willrob - 30 September 2009 03:38 PM

Someone bought 123 million shares right at the close pushing the stock up to 4.84. It wasn’t me.

Could someone please explain how it is that a fund would place a market order of well over half a billion dollars, rather than accumulate throughout the day, at a cheaper price? Or is my premise mistaken?

gatesofhell - 30 September 2009 04:14 PM

willrob - 30 September 2009 03:38 PM

Someone bought 123 million shares right at the close pushing the stock up to 4.84. It wasn’t me.

Could someone please explain how it is that a fund would place a market order of well over half a billion dollars, rather than accumulate throughout the day, at a cheaper price? Or is my premise mistaken?

Could have been a rogue trader for an ailing bank.

Breaking News Alert
The New York Times
Wed, September 30, 2009—5:26 PM ET
——-

Chief Executive of Bank of America Expected to Step Down, Bank Sources Say

Kenneth D. Lewis, chief executive of Bank of America,
expected to step down, bank sources say.

Read More:
http://www.nytimes.com?emc=na

gatesofhell - 30 September 2009 04:14 PM

Could someone please explain how it is that a fund would place a market order of well over half a billion dollars, rather than accumulate throughout the day, at a cheaper price? Or is my premise mistaken?

Can someone explain to me why anyone would do this unless they thought the price would make a profit for them? Can this be merely a end of quarter-get-it-on-the-books window dressing? Or does someone know something we don’t? Something related to earnings?

Maybe they have another 4 billion $ in Citi that looks a little better now. And over a few days they can sell at market and this higher trading level makes them some lunch money.

This is what someone knew earlier today. News not released till 8 pm ET.

Citi closes sale of Nikko Cordial to SMFG

  * On Wednesday September 30, 2009, 10:12 pm EDT

NEW YORK (Reuters) - Citigroup (NYSE:C - News) completed the sale of its Japanese brokerage Nikko Cordial Securities to Sumitomo Mitsui Financial Group (Tokyo:8316.T - News), one more step in the U.S. bank’s plans to shed non-core assets.

Citigroup said on Wednesday the sale to Sumitomo Mitsui (SMFG), Japan’s third-largest bank, had a total cash value of $8.7 billion, including retained cash and debt payments.

Citigroup, the third-largest U.S. bank, said it will book an immaterial after-tax gain during the fourth quarter.

The bank also said it would form an alliance with SMFG to gain access to its global corporate banking clients.

For SMFG, the purchase is a key defensive move because it prevents the bank’s bigger rivals from getting stronger, while it would help Citigroup cushion the impact of bad loans and toxic assets, according to analysts.

Citigroup was forced to sell off assets globally to raise cash after suffering more than $85 billion in credit losses.

Nikko Cordial was part of Citi Holdings, a division that includes assets the bank is looking to shed or close over time.

In January, Citigroup decided to separate into Citicorp, housing its key banking business, and Citi Holdings, which included its brokerage, some consumer finance businesses, and other non-core assets.

The U.S. government injected $45 billion in Citigroup and is the bank’s largest shareholder, with a roughly 34 percent stake.

Looking at the 2.50 2011 calls today and they are up .01 while the common is down .12.  Nice discrepancy.  Same with the $5 2011 calls.

The dollar falling backstopped this morning’s financial sector hemorrhage. There are some value buyers stepping in.

The big stat I’m looking at is that 38% of Americans are in fear of losing their jobs over the next year and so those people aren’t spending money.

Had a buy in on C but am holding for a significant correction should it come.  May not come but I’d rather miss a small correction and have a shot at a much larger one.  I’m optimistic in the economy but data right now combined with a market that people want to sell off is holding me back from buying right now.

Eric Landstrom - 02 October 2009 09:10 AM

The dollar falling backstopped this morning’s financial sector hemorrhage. There are some value buyers stepping in.

The big stat I’m looking at is that 38% of Americans are in fear of losing their jobs over the next year and so those people aren’t spending money.

38.2% to be exact.  Fibonacci is everywhere.

If you never researched the basis for fibonacci it’s pretty fascinating and worth the 5 minute google search.

artman1033 - 02 October 2009 12:24 PM

Mace - 02 October 2009 12:14 PM

What an astounding number!

Has this question been asked before?

What question?

If the question is do Fibs apply to economies on a macro level, then the answer is yes. Also to nations, empires and fish in the sea.

I dare sare there are many sites around on C’s T/A, however, I find this one pretty helpful.

I hope the mods don’t see this as spam.

gatesofhell - 03 October 2009 08:36 AM

I dare sare there are many sites around on C’s T/A, however, I find this one pretty helpful.

I hope the mods don’t see this as spam.

We may as well post the chart from the blog. The guy is onboard with the short squeeze for a day or two if C breaks out. And he is right: traders like myself will buy at the moving 50. On the other hand I have a net gain of C common from Friday.

Found this on CNBC this morning.  If the US does in fact sell it’s stake it would show their confidence in C as a going concern without government training wheels.  They are only going to do this though if in fact C can raise capital through debt or equity.  Right now C in trying to pay back the government is looking for the gov to insure any offerings which seems like C is far from having the training wheels removed.  The talk about too big to fail having to be resolved I am sure is also weighing on investors. 

Prince Alwaleed bin Talal, a big investor in Citigroup, urged the U.S. government to sell its stake in the bank as soon as this year to boost investor confidence, Emerging Markets magazine reported.

Sharon Lorimer

“The earlier the U.S. government exits its investments in those companies, the better,” as long as the withdrawal is not done in a way that hurts the prices of U.S. banking stocks, the Saudi billionaire was quoted as saying in an interview published on Sunday.

“We need to give confidence back to the shareholders and investors that these companies are moving along without government support.”

A series of bailouts during the financial crisis has left the U.S. government with a 34 percent stake in Citigroup, after the bank obtained $45 billion from the government’s Troubled Asset Relief Program.

Sources told Reuters last month that Citigroup [C 4.52   -0.01 (-0.22%)    ] was talking to U.S. officials about how the government should shed its 7.7 billion shares in the bank.