Lost some ducats today but in what Im calling a ninth inning miracle the S&Ps dropped about 8 handles in the last 30 minutes. Plus when FSLR reported numbers and proceeded to jump 16 dollars in milliseconds I shorted some, it has since come back to earth I covered and made a few bucks - good for the P&L good for the confidence.
Heres an idea to chew on - CITI finished its preferred exchange, not every preferred was tendered so they are outthere trading in highly illiquid fashion. CITI would like to resume paying a dividend on its common stock (or at least thats what Im being told - oh and by the way does the government have to pay taxes on its CITI dividends - thats wierd) because there are lots of funds outthere that cant own stocks unless they pay a dividend - but they cant pay a common dividend without paying preferred dividends. My guess is they open up the exchange offer again to eliminate those remaining preferreds, the exchange offer was 7.3 shares of C for your preferred, so at todays prices
C=3.14*7.3=$22.92
So preferred value is $22.92 and C preferred series M closed today at $14.71. This is a risky trade but might be worth looking into.
as my 5 year old boy says peace out suckas
JB
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