Citigroup – the zombie bank is alive!

March 26, 2010

Citigroup shares are looking perky this morning. Last checked they were up some 6%! And the ball is still rolling. I made a recommendation on the 18th March to park your money there – so this is turning out to be a real winner – the funny thing about citigroup (ticker: C) is no one really expects much from a deader than dead bank – till of course…..check this out  Bloomberg reports that the U.S. Treasury “intends to unload its 27 percent stake in bailed-out bank Citigroup Inc. using a preset trading plan that will lock the government into a schedule for selling its shares, people with direct knowledge of the matter said.” What does this mean in plain simple Simon English – well it just means the Citigroup Inc is going to be denationalized as the US government no longer wants to get into banking. What does this mean for you the investor? Simple, Citigroup shares will go higher from this point onwards. But hold on a second, there are still a few pesky details here that really bother me. First, how the fuck is the US government going to unload Citigroup shares? If they dump it all in one go…then what’s likely to happen is the share price from the current value is going to take a nose dive…so the devil is really in the details. 

To me this idea of the US Treasury saying bye bye to Citi was given from day one – the real question is when. The good news is if you dived in on 18th March, you’re already made a decent profit (8% is not bad for just one week! huh)  – the real question is do you hold on to Citi and seed out rope or do you begin exiting her? Personally, I don’t know. The way I see it the US treasury usually fucks it all up / so I will be looking out for the specifics as to how they’re going to unload $7.7 Billion into the market without causing a crash. Meanwhile if you’re still into C, she’s good for the short run, seed out rope and hold on tight……she’s alive!

(Warning: Pls note there are only compulsive liars, day dreamers and perpetual masturbators online – there is no truth in the internet – since I am a mental case you cannot possibly take my recommendation without a truck load of salt / do your own research when investing)

Disclosure: The author has substantial positions in C

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