Monday, March 21, 2011

Sold More C...


Unfortunate that I didn't do it sooner. I waited all this time for a dividend increase and all we got was an announcement that Citi will be implementing a 10 for 1 reverse split and then doing a dividend increase in 2012? Thanks for ruining my retirement plan, Vikram Pandit! I'm not going to be doing any yoga with you. The least we deserve is a share buyback!

The Don't Be A Drag Just Be A Queen part of me said: We don't like reverse splits, so I got out at market on that partial position in my Roth IRA and have to figure out how to get out of the rest of the partial position in my SBA. If I don't do it soon, I'll be left with one share of C and a four figure loss. At least now, I can utilise the capital more efficiently.

Here's how I see it:

Pre-crisis, C had a dividend of $0.54 per share. With a 10 for 1 reverse split, that puts C at around $40 a share. In implementing the reverse split, dividends will also be reduced. At $40, you can either buy JPM or BAC at a much more attractive price. And JPM is even doing a share buyback, which means JPM will most likely be able to defend its value.

So, I ran the other direction even though earnings announcement are due 18 April 2011. Now I think I'm going to sell the rest of C and get into MFG or NMR - unless I find another balance sheet that makes my chart beat faster.

Will I be looking back on this and lamenting?

Don't know, don't really care either. I'm looking for better opportunities!

Friday's Report Card:

+0.88% SBA

+0.97% Roth IRA


+0.43% S&P

+0.71% DJIA

+0.29% Nasdaq

Today:

-0.76% SBA

+0.17% Roth IRA


+1.50% S&P

+1.50% DJIA

+1.83% Nasdaq



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