

Citigroup Inc. Message Board

  • c11ray c11ray Mar 16, 2013 3:14 PM Flag

    Citigroup Announces $3 Billion Redemption of Trust Preferred Securities

    Here is the link that makes a total of 4.2 billion that the FEDs approved for citi to buy back.
    WOW this will moves us over $60/share very soon.

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    • Trust Preferred Securities which are actually an equity/bond hybrid are not counted in the outstanding share count.

      Buying back these things is like buy back debt. It uses cash and they lose the equity on the balance sheet.

      It will do nothing for the stock price. But can't blame a bag holder for trying to find some ray of a hope in an otherwise financially hopeless company.

      • 3 Replies to stocktor_evil
      • so you think that no one bought C shares last summer for the first time?

        Are you really that dumb?

      • Maybe you miss the point.
        These preffereds pay over 7% interest. C will buy them with, in effect, money from the Fed or from depositors at 0.1% cost. Effect to earnings will be huge. The math is easy: boost to earnings is 7% of $3B = 200M$/year. With a P/E of 10, that's $2B increase to market cap. With P/E of 20 it is $4B increase to market cap. The whole B.S. about "passing stress test" is the "cover" they (Fed and C) need to justify this. Bottom line, they want to push C stock back up.

      • I'm long with an average of $29 and I've been holding C for 4 years. I imagine most of the longs here are not what you call "Bagholders.?

        You other wise seem like a bright enough guy who if you are calling others bagholders are likely to be a short.

        And if you are short C, you have been absolutely crushed over the past several months -- especially since November.

        Why would someone of your intelligence continue to fight the tape, over these many, many months?

        Is your C short affecting your personal life too?

        Enjoy the weekend, and use your brains and cover your short?

        Other than that I enjoy the information you provide in your posts.