C

CFA General
#1

Under $20. I don’t grab falling knives, but this doesn’t compute much.

#2

agreed.

#3

I think someone will end up buying them out… Could JPM do it? A big European such as Barclays? Which parts would they keep? I think it is possible.

#4

They will get financial Help from the Arab countries…the Saudi Prince will bail them out once again…Oil money will flow back to US in the form of saving their financial services and banking…

#5

tough to say due to their size. I would think a syndicate of foreign buyers at this point would be the best candidate because of the weak dollar

#6

i think that the C’s terrific performance over the past few months has confirmed the sordid conclusion that the quality of a company’s culture and morale is a strong leading indicator of its stock’s performance

#7

Why is $20 cheap? IMHO, they have liabilities (some that aren’t even on the balance sheet) that are secured by real estate (& non-recourse to the borrower). These liabilities are leveraged up the wazoo. I’ve been getting taught a lot lately by the market: values don’t appear quickly. C’s fall is happening too fast. Let the facts settle and then look for opportunity.

#8

I think there’s just such disbelief that something like this could happen to Citi. In this Market you have to suspend disbelief.

#9

I share that disbelief…

#10

Is there any calculation that anyone can do that can calculate the total subprime exposure that C has? There must be some sort of range for losses that someone can calculate? This reminds me of Enron accounting.

#11

How can you calculate it? They don’t even know! THAT’s WHY THEY’RE IN A FREE FALL.

#12

^^ what do you think all the analysts have been trying to do for the last six months? Its not just subprime, did you read the thread about the lack of liquidity in the AAA market?

#13

CFAdummy Wrote: ------------------------------------------------------- > Is there any calculation that anyone can do that > can calculate the total subprime exposure that C > has? There must be some sort of range for losses > that someone can calculate? This reminds me of > Enron accounting. I think that lack of transparency is part of the reason we see new lows on a daily basis.

#14

I don’t know, but everything I learned from Finance and the CFA program tells me that losses and profits can be calculated to some degree. Somehow this subprime mess confuses me. Can someone explain the math to me? Is there some sort of super quant math involved in calculating these profits and losses?

#15

virginCFAhooker Wrote: ------------------------------------------------------- > How can you calculate it? They don’t even know! > THAT’s WHY THEY’RE IN A FREE FALL. i’m on board with this (even though i’m otherwise ambiva-virginCFAhooker)

#16

My cheek still hurts from BSC today…

#17

You voluntarily went long Bear Stearns?

#18

Pretty soon I’m buying Bear (the whole thing).

#19

When this whole internet fad wears off people are going to want their Yellow Pages! Join me and buy some RHD… trading with a 150% free cash flow yield!

#20

What do you think will happen to C if the Fed announced, as a surprise, that it was going to start buying Mortgage Backed Securities? +10?