Abu Dhabi Takes a Piece of Citi
November 26, 2007 – 11:25 pm
I find it amusing how the “wheel-barrow” dollar, coupled with the obliterated stock price of C (thanks to the ‘credit crisis’), has paved the way for Abu Dhabi to step in and eat almost 5% of “the group” for a song and dance, or 7.5 billion dollars.
I’m not a protectionist. As a matter of fact, I believe Americans run their companies like fucktards. I just chuckle, not laugh, at how this government is allowing major institutions, like C, CFC or WM, fall by the wayside.
On this news, the market should spike tomorrow. However, I’m not ready to jump back on the bull train, until I see significant improvement in sentiment.
As you know, the fundamentals have not changed.
Hat tip: Dinosaur Trader
Was gonna buy some DIA calls today, then I decided to buy more the some……OK at the lows I brought some DIA calls…
November 26th, 2007 at 11:29 pmwait a minute I also brought some VMW puts!
November 26th, 2007 at 11:30 pmMakes me laugh too…America is so fucked up. Like I said we need a good DEPRESSION(bitch slap) to straighten our ass out! I’ll be SHORTING the BULLSHIT bounce assuming it happens. I can’t imagine why letting a bunch of ragheads own 5% of our largest bank while getting 11% annual interest until ‘10 & ‘11 is bullish, however, I’ll take the SHORT opportunity. George, Hank & Ben must be at their wits end to allow this purchase. Not surprising considering they are nitwits anyway. Another milestone for America the great…lmao.
November 26th, 2007 at 11:35 pmI gotta say, I lied up their…….no calls and no puts! ( damm short VMW down here )
I sometimes get gitty when I see BIG NEWS HEADLINS……..and say stupied stuff,……..
But this I mean, I am not at all suprised about the Adu AlBlo , 7.5 Billion, the terms are depsperate, but come ….who is suprised that more oil money is comming to C? and I don/t think it save the day, pops c yes, till when who knows, The market has more shows the that Marcos lady.
November 26th, 2007 at 11:43 pmFly, how can you say the gov’t is doing nothing? They are letting these folks prop up the bank!
Who cares though… C’s stock will be in the shitter for the next year anyway. Let Abu sit on it while the stock pukes on itself.
Frankly I’m finding myself more and more believing that the best way to get past all this is to let CFC, WM, C, etc. go bankrupt, and let all the smart guys who didn’t ruin their franchises with bad bets start with a clean slate.
November 26th, 2007 at 11:46 pmAs long as the damge is limited to a handful of institutions, they’ll let them spin in the wind. But if the whole industry takes it in the shorts, they’ll get bailed out just like the airlines and Detroit. We’ll have yet another bill to send to the idiot taxpayers (that’s us).
Oh, and Howie: Crack is whack, dude. Seriously.
November 26th, 2007 at 11:54 pmI do like the crack, and cheez whiz….however wow. I mean so….oil buying more c…..better, back up the trucks and load up, but do it in stages, you buy a little , average in and up….buy and hold, XLF…….time time time,,,,,,DIV worries…way no….sooo good, gotta buy and hold…….U disagree…..put the pipe down.
November 26th, 2007 at 11:58 pmDevilDoggie: Not only are you a negative, anti-American bear rooting for a depression, you’re a racist as well. Ever hear of karma?
November 26th, 2007 at 11:58 pmDevil:
Please keep the racial shit to yourself.
Wood:
Aren’t we all so scared of inflation?
The Fed lost when they went neutral last meeting. By now, they should have indicated another cut.
And, the gov’t should provide some sort of bailout.
November 26th, 2007 at 11:58 pmWarren Buffett is sorta like this generation’s J.P. Morgan in that he’s the go to guy during financial crisis. I’d be surprised if he didn’t get a look at the Citi deal before it was offered to the Arabs.
If he looked at it and passed, isn’t it kinda scary that he didn’t want to be paid 11% per year to take Citi equity risk even though it’s trading at 5 year lows?
November 27th, 2007 at 12:24 amThis citi deal is bad news.
November 27th, 2007 at 12:26 amPud-I seriously doubt Buffet was given an opportunity before the A-Rabs considering they already have a significant interest in Citigroup.
November 27th, 2007 at 12:26 amOf course this deal is bad news, but it is just the type of thing the markets need. It would be worse if we didn’t get this kind of news. Hell, we already know that everything is FUBAR. What the markets want now is something resembling a solution.
November 27th, 2007 at 12:33 amSteve,
That deal was shopped dude. You think the “Arabs” are some sort of racial monolith. There’s like a gold phone somewhere and the instititutional desks just use it to call “Arabs?”
11% for a convert to wait on what is our largest money center bank is fucking scary dude, I don’t care if it was picked up by the Martians. I’ve done convert deals at 3% in this kind of interest rate environment.
And friends, the asshole’s racial references aside, it’s not like the Doobies are known as the world’s savviest bidnessmen.
This could be dumb money all over again, like Japan buying Rock Center in the eighties.
November 27th, 2007 at 12:34 amJust what the markets need. Citi selling it’s equity (which is now trading at a 7% dividend yield for Joe Sixpack) for a mere 400 basis points higher, and, oh yeah, a higher spot on the balance sheet.
Yeah, that’s great news for the market.
November 27th, 2007 at 12:36 amSteve, to clarify my earlier point… it’s the Saudi prince that “already has a large stake” in Citi (if he still does.)
These are Doobies. Different hats.
November 27th, 2007 at 12:37 amI understand that they are a separate group from the Saudi’s, Jake. I just figured they all had connections down there, like the good old boy’s club up here, or something similar.
November 27th, 2007 at 12:44 amJust consider your losses “non-cash write offs.”
November 27th, 2007 at 12:47 amFrom the Journal Online article:
As a result of the deal, the investment authority known as ADIA will become one of Citigroup’s largest shareholders, with a stake of no more than 4.9%. The stake will exceed that of Saudi Prince Alwaleed bin Talal, long known as one of Citigroup’s largest shareholders, according to a person familiar with the situation.
“This investment, from one of the world’s leading and most sophisticated equity investors, provides further capital to allow Citi to pursue attractive opportunities to grow its business,” said Sir Win Bischoff, the bank’s acting chief executive officer, in a statement.
Yeah, kiss their asses Sir Winnie, you just sold ‘em a pig in a poke, and you better keep that sucker on the line.
November 27th, 2007 at 12:52 amI am short JPM. Buffet probably WILL back those guys.
November 27th, 2007 at 12:53 amSomeone is propping the yen carry trade in a big way right now.
Gotta be central bank action.
____________
Meanwhile, let’s see how long it takes the futures to “digest” what this “infusion” really means for the US banks….
November 27th, 2007 at 12:55 amFrom a reader’s post at Billcara.com:
“Scenario 1: The Fed sticks to its assertion that the risks for inflation and growth are now in balance, does not cut rates any further, and the U.S. economy grows past its credit crunch. If this happens, it would be massively bullish for the U.S.$, massively bearish for gold and potentially bearish for Hong Kong and Chinese equities (which are now anticipating more rate cuts). It would also be very bearish for U.S. Treasuries and government bonds around the world. Additionally, we would also most likely see a rotation within the stock markets away from commodity producers and deep cyclicals (which have been leading the market higher for years) toward the more traditional “growth†sectors, such as technology, healthcare, consumer goods, and maybe even Japanese equities.
Scenario 2: The Fed sticks to its guns, does not cut rates, and the U.S. economy really tanks under the weight of the credit crunch. In essence, the U.S. would move into a Japanese-style “deflationary bust.†In this scenario, equities around the world, commodities, and the U.S.$ would collapse, while government bonds would go through the roof.
Scenario 3: The Fed ultimately cut rates, but this fails to rejuvenate the system and get growth going again. This would likely mean stagflation. As such, gold and other commodities would do well, while stocks and the U.S.$ would struggle. Excluding bonds, this is increasingly what the market is pricing in today.
Scenario 4: The Fed ultimately cuts rates, and succeeds in reigniting the economy. This would be good news for equity markets, commodity markets, and the U.S.$ (as world trade and foreign buying of U.S. assets would again expand, increasing the need for U.S.$s). Of course, this scenario would be terrible news for bonds.â€
November 27th, 2007 at 4:43 amI’ve been trying to do more homework lately… This Citi news item made me recall this, from Meredith A. Whitney of CIBC World Markets. She’s married to a pro wrestler. She made a great, gutsy call:
http://www.nytimes.com/2007/11/01/business/01citi-web.html?_r=2&ref=business&oref=slogin&oref=slogin
Stock was at $42ish… She called low 30s.
Fly, you should have an “anti-asshat” award. She deserves one.
November 27th, 2007 at 4:48 amLets just call this (particular) bottom, the Fly I’m not gonna be the last bull in Rome standing bottom.
Prince Ismokealottaweed was sharing his crackpipe with the Doobies & told them to but a piece of America. Thats how deals get shopped these days.
ok, poll time: Who is gonna short this pop? Who is gonna dump their loser longs into this pop? Who is gonna buy this pop, short coverers included?
November 27th, 2007 at 4:51 amThanks for the h/t Fly.
It’s the “golden Arab phone” that feeds me all my information. I just pick it up for a quick report on everything “Arab.”
Funny, Jake.
-DT
November 27th, 2007 at 7:43 amhttp://gizmodo.com/gadgets/pico-projector/displaytech-supplying-micro-lcds-for-pico-projectors-technology-now-less-vaporous-326652.php
Displaytech Supplying Micro LCDs For Pico Projectors, Technology Now Less Vaporous
Displaytech announced they will be supplying 13 companies with micro displays for Pico Projector use. Displaytech’s Pico Projector technology, intended for use in cellphones, will be rolled out at CES 2008, and can project video onto any surface . It’s not the most exciting news, because it’s just a component, but it excites me because it means the ball is rolling on the oft-discussed technology. One of my biggest worries is that the Pico Projector will disappear into obscurity, never to be touched by consumer hand. And it would ruin my dream of entering large public spaces and projecting incriminating videos of Chen with various gadgets.
November 27th, 2007 at 9:04 amWho’s Chen, your wife?
November 27th, 2007 at 9:17 amYeah let’s be PC. After all they are our friends. It’s not like their killing Americans or anything or ripping us off on oil.
November 27th, 2007 at 9:21 amfunny. no just lifted it from the article. i think some people are holding mvis round here
November 27th, 2007 at 9:24 amI’m not buying this pop but I was buying last week and yesterday. Now I wait to see if the bulls hold this line or if the bears storm the gates.
November 27th, 2007 at 9:26 amIs that Header pic new? “The Fly, going to cash since 2007″, lol.
November 27th, 2007 at 9:27 am‘Dog. One more time: This ain’t the place.
November 27th, 2007 at 9:29 amIs Michelle Malkin a relative?
November 27th, 2007 at 9:30 amYeah, saw that last night.
November 27th, 2007 at 9:31 amIf she is, I want an intro.
November 27th, 2007 at 9:32 amBad play on XFML, have some spine. Big Gay Bears or not, they are getting ready to hit the switch on the chinese lotto machine and the XFML lotto ball is going to jump out of the hopper.
November 27th, 2007 at 9:33 amThere goes Citi — red!
November 27th, 2007 at 9:38 amBOOM just printed 63. Something is up here.
November 27th, 2007 at 9:40 amThe whole world is looking for a bounce and short squeeze. In the meantime, the financial condition is worsening by the minute. Banks will be forced to sell equities -any equities that have a profit - to shore up their books before the end of the quarter. Businesses are in the same boat. The boat is drawing water.
It is very scary to be short a market that has a history of rising after Thanksgiving. My Old timers disease recalls, 61 out of the last 64 years. But we have never had financial conditions like this since 1930. The only times it has been down, have been as a result of recessions.
November 27th, 2007 at 9:42 amChrist so I guess this stake was bad news as C is red now. Too much bearishness out there.
November 27th, 2007 at 9:42 amMDVN is a screaming short.
November 27th, 2007 at 9:58 amIsn’t that kind of odd that we stopped those same buyers from buying ports, but when we are in a tight spot we beg them, (and I’m pretty sure there was some begging went on behind doors) to buy a piece of our country’s biggest, iconic bank. Man is this US of A is selling itself in a garage sale. WOW.
November 27th, 2007 at 9:59 amok … one more leg down before we get a bounce that sticks
doesn’t everyone know that the world is coming to an end?
November 27th, 2007 at 10:03 amGaps — of course it was bad news… who sells convertible equity at 11% when their dividend is 7%?
Someone who just shat their pants, that’s who.
November 27th, 2007 at 10:06 amFSLR is getting smacked around this morn, and yet JJ is still down 50% on his short sell.
November 27th, 2007 at 10:07 amThe available Arab oil wealth is $3T, what’s a few billions when you’re average return is 4.7%?
November 27th, 2007 at 10:11 amBought 5000 QID @ 41.27. SHORT 3000 NSR @ 33.91.
November 27th, 2007 at 10:11 amThe $TICK has been mostly green so far, though now going slightly negative, but no where near the negative levels in the last 20 days. The bond futures have retreated almost a point.
Still too early, but we might end up.
November 27th, 2007 at 10:12 amRoll over, roll over
November 27th, 2007 at 10:12 amAnd they all rolled over and one fell out
10 bears in the bed and the little one said…
Roll over, roll over
November 27th, 2007 at 10:15 amAnd my stocks rolled over, and another stopped out
9 stocks in the bed and the strongest one said…
Yeah, baby. KBH going str8 down.
November 27th, 2007 at 10:15 amAnd Daddy Bear said, “Why’d you fall out of the bed?”
November 27th, 2007 at 10:15 amAnd the little one said, “I got too close to where I got in.”
Roll over, roll over
November 27th, 2007 at 10:17 amRIMM rolled over, cause we cant get a bounce
8 stocks in my head, and my “other self” said
Fucked over, fucked over
All the bulls are dead, cause Tim Knight said…
Roll over, roll over
November 27th, 2007 at 10:18 amDid Schumer just say Won Ton Bang?
November 27th, 2007 at 10:18 amKD — go ask any 5% owner of any equity how much it’s worth to be a minority investor.
November 27th, 2007 at 10:20 amSenator, did you short CFC before you wrote your letter to get more money hair plugs to fix that wierd-ass hairline?
November 27th, 2007 at 10:20 amSenator Charles Schumer (D-NY):
November 27th, 2007 at 10:28 amhttp://115.photobucket.com/albums/a391/kingpopgun/al2.jpg
Chuck the Schmuck.
Man, if even one Demorat takes an Econ 101 class, the whole GOP will be in some serious trouble.
November 27th, 2007 at 10:28 amRon Paul is the only one who knows what’s going on in the whole Congress.
November 27th, 2007 at 10:30 amShort alert:
Take a look at STP re-enacting the famous Led Zeppelin hit of 1973:
Triple Top Breakdown.
November 27th, 2007 at 10:31 amIt’s unfortunate that Paul is a nut.
November 27th, 2007 at 10:31 amAEO looks to have found a bottom.
November 27th, 2007 at 10:32 amBOUGHT another 3000 QID @ 41.08.
November 27th, 2007 at 10:38 amIn my not so humble opinion as opposed to Jakes not so humble opinion -
Ron Paul is the only thinker outside the political box & by extension the only sane one of the bunch on both sides of the political aisle.
November 27th, 2007 at 10:39 amI Still Remember - Bloc Party
November 27th, 2007 at 10:40 amCorporation - Sigur Ros
White Flag - Dido
If You Love Somebody (Set Them Free) - Sting
Sail On - Commodores
Lonesome Loser - Little River Band
Libertarianism is a good political philosophy for poli-sci class discussions.
Sort of like communism — sounds great in theory, immediately falls to schite upon meeting the air of the real world.
And I say this in the spirit of one who is (mostly) libertarian.
November 27th, 2007 at 10:43 amcareful there devildog …. the market is groping for a bottom to this current selloff
you now have a shitload of company
its all over the news .. the entire globe is aware of the problems
even the Fly, itself, puked up his bullish outlook
November 27th, 2007 at 10:44 ameverything is great in theory but when the rubber hits the road, you need a free thinker who isn’t wed to previous opinions or self interest groups
someone who can respond to any situation …. just like in the markets
you flipped the switch to bear, Jake .. you know what I mean
November 27th, 2007 at 10:46 amBloc Party is good stuff, BOOM.
November 27th, 2007 at 10:50 amVote Huckabee.
November 27th, 2007 at 10:51 amBOUGHT 5000 QID @ 40.68.
November 27th, 2007 at 10:54 amAbu Dhabi’s grease will burn for a few hours.
November 27th, 2007 at 10:54 amThis blog is degenerating into talking politics. Fly, put a stop to this and laser beam all the “politicos”.
November 27th, 2007 at 10:57 amHey Boomer, I’m assuming you’re not lightening up on BOOM up here?
November 27th, 2007 at 10:57 amJuice:
November 27th, 2007 at 10:58 amThanks for the words of caution, however, this market is going down. I’ve got plently of cash in reserve and I’m luvin this BULLSHIT bounce. BOUGHT another 3000 QID @ 40.59.
I think the rally today is for real. I would cover my shorts, if I was, which I’m not. We have taken out the Day high on the S&P, Russell, Dow and Nasdaq. The $TICK is above 1000. 30 year bonds down a point and a half.
November 27th, 2007 at 11:00 amHow are those FXP working out?
Thanks for the FLY Bottom…
November 27th, 2007 at 11:01 am2 words…. buy program.
Just check the bounce in BIDU. Forget being short for a little while… at least a day or two.
-DT
November 27th, 2007 at 11:02 amConsumer Confidence is at 2 year lows and forward confidence at 4 year lows. Stocks should’ve sold off on this data but instead they are rallying, we are at the lows. Consumer Confidence is a good contrary indicator.
November 27th, 2007 at 11:02 amThe psychology must be that since CITI had to negotiate such a horrible deal for a cash infusion, then CITI is in deep shit and the FED will drop rates signficantly.
Stock jockeys are addicted to rate cuts, even if they won’t work.
November 27th, 2007 at 11:04 amSure this rally is for real. It will be for real for a few days, or maybe even a week or so, and then it will fail.
If you think that this is the low, God help you.
November 27th, 2007 at 11:07 amGod? What does he care about the stock market?
November 27th, 2007 at 11:10 amMarketwatch:
11:09 [GOOG] Google goal to develop 1 gigawatt renewable energy cheaper
11:08[GOOG] Google to focus on solar power, wind, geothermal tech
November 27th, 2007 at 11:11 am11:08[GOOG] Google to spend ‘tens of millions’ in R&D in 2008 on energy
11:07[GOOG] Google to develop energy cheaper than coal-based electricity
11:15 [GOOG] Google to cure cancer.
11:18 [GOOG] Google to communicate with heretofore invisible Space Alien Magicians.
11:21 [GOOG] Google to bring about Second Coming
November 27th, 2007 at 11:19 amWoodshedder is right in his ass-essment.
I’m looking for a test of 12,000 on the Dow before year-end. The bottom will be when Fly capitulates and caves in to the wishes of his clientele, heh-heh.
Jog on.
November 27th, 2007 at 11:20 amWoodshedder, I don’t think more than a day ahead, so it doesn’t matter. It is the low (most likely) for today.
November 27th, 2007 at 11:20 amFly needs to make more friends in higher places.
November 27th, 2007 at 11:21 amI added 2k BOOM @ ~60.20. Why not?!
November 27th, 2007 at 11:21 amBears are already far too arrogant for the Dow to continue to 12k.
November 27th, 2007 at 11:22 amHey, the FLY:
Enjoy my latest article on FSLR yet?
You like it? Like to short FSLR?
November 27th, 2007 at 11:26 amSteve, this move down has nothing to do with the bears. It has to do with a change in the fundamental economic picture of the U.S., and by proxy, the globe.
Do you think that only the “bears” are sellers here? Nonsense. Anyone with half a brain can see that the next few years are going to present major challenges for the U.S. economy. There are many sellers that are selling not because they are bears, but because thats what you do when you want to avoid losing money in a market down turn.
November 27th, 2007 at 11:28 amMy stocks picks will return 1000 folds in the next periods. Fly, don’t you like the folds? Especially 1000 folds? It is like an orgy of folds, not unlike viz a “folds harem,” or such viz King Xerxes’ palace in the movies 300. No? Odd, no?
jog on
November 27th, 2007 at 11:32 amgrant
Perhaps, woodshedder, but I’m not convinced yet. I still see many positives for the US and global economy. Time wil tell, and I’m not married to my views. But I’m still bullish and when I hear bears invoking God it makes me even more so.
November 27th, 2007 at 11:33 amMy dentist just removed a meaningful amount of
Cadmium Telluride from my teeth. I have stored it in a jar, next to my palladium. I cannot wait to rest my head of the folds of my returns over the next periods. Odd, no?
Excuse me, someone is approaching my motorcycle. He seems nice. He is smiling.
Why is this man carrying a sock? Odd, no?
SMACK! SMACK!
Ugh, he has bludgeoned me about the head and shoulders with a sock full of stale biscuits! My folds! My cadmium! They are spilt on the sidewalk! Viz! Oh sweet viz!
Odd, no?
November 27th, 2007 at 11:38 amDevildog,
November 27th, 2007 at 11:39 amHow’s that QID working out?
AEO getting ready to run.
November 27th, 2007 at 11:40 amSteve, the invocation of God was nothing other than a well-used phrase, “May God help you.” Do not read anything else into it.
Other than that, yes, I’m bearish, but since last week, I’ve only been long AAPL and MVIS. Obviously, I’m looking for a bounce.
There will be many positives for the global and U.S. as soon as all the derivatives and excess liquidity from the sub-prime are washed out.
November 27th, 2007 at 11:41 amFly-
November 27th, 2007 at 11:42 amBreak out the golden bear to seal the deal.
BOUGHT 3000 QID @ 40.50.
November 27th, 2007 at 11:42 amKeep buying that bullshit Devildogshit. Ready to lose a quick few grand you little bitch.
November 27th, 2007 at 11:44 amBOUGHT 3000 QLD @ 99.93
November 27th, 2007 at 11:44 amCrude oil is for asshats.
November 27th, 2007 at 11:48 amFuck the golden bear.
How bout some Leah Dizon?
http://yokooxnetradio.up.seesaa.net/image/Leah_Dizon_01.jpg
November 27th, 2007 at 11:57 amFLY…selling stock so fast he can’t even post today, baby bears rage, rage, rage against the night…amazing that this group is being out smarted by the boys from the land of sand…let’s all buy a dual engine sv today, performance measured in gallons per mile and sell all our stock at a discount…sage never smelled so good…baby bears RIP.
November 27th, 2007 at 11:59 amHot News: The Sovereign fund of East Timor is buying the NYSE and Gracie Mansion.
November 27th, 2007 at 12:03 pmFrosty,
Obviously your brain has been melted along with the rest of your extremities.
Stay out of the greenhouse next time, rook.
Better yet, see an FC about mutual funds.
November 27th, 2007 at 12:14 pmDead cat bounce. However, true to my name, I am 100% cash. I will spend the rest of the day counting my gains over the past few trading sessions while the bulls, bears and program trades fuck with each other.
I will also be calling a truce with the Fly as he seems to be thinking more objectively and being patient with his re-entry into this wild market. In the mean time, I am no longer down with Devil Dog and his racial BS. He couldn’t even spell “they’re” correctly. Dipshit loser…
Developing…
November 27th, 2007 at 12:35 pmBOUGHT another 3000 QID @ 40.53. SHORT another 3000 NSR @ 34.18.
November 27th, 2007 at 12:54 pmGet a grip. If you want to play with the big boys in the market stop crying and put on your big boy pants. Yes, these are bad times, but get over it. Don’t think I will be jumping out of my 38th floor window anytime soon.
November 27th, 2007 at 1:09 pmnewequity:
November 27th, 2007 at 2:01 pmI’m holding what I have today in addition to 20K more QIDs @ $34. Looks like I’m UP today too. BTW, THE NEXT FALSE BOTTOM WON’T BE in UTIL THE S&P OUTPERFORMS TH DOW & NASDAQ…just a hint for a stupid cow…mooboohoo. Who’s the little bitch now? In addition, at least I’m walking the talk…the rest of you are just talking…anyone can do that. When you going to back your smack…little bitch?
No one listened to me and shorted FSLR?
Too bad. This is the short of the century! Short to ZERO.
November 27th, 2007 at 2:48 pmI couldn’t understand some parts of this article bi Takes a Piece of Citi | Stock Picks and Discussion at iBankCoin.com, but I guess I just need to check some more resources regarding this, because it sounds interesting.
December 30th, 2007 at 6:53 am