Will a Citigroup Offering Be Enough?
It still has a long way to go to win over the investment community.
Asian stocks ended lower. The Hang Seng and the Nikkei were down 0.19% and 1.42%, respectively. European stocks, however, were in positive territory early this morning. And here in the US, we're currently trading higher.
Here's what I'm seeing this morning:
Is an offering in the works?
The chatter is that the big-name bank could do a hefty $20 billion offering in order to pay Uncle Sam back some of the TARP money it got during the macroeconomic meltdown.
1. Don't get me wrong: I like the idea that one day the company could get out of the TARP handcuffs. But talk among the investment community of a $20 billion offering? The word "dilution" pops into my mind.
2. Some of the folks that bought in the September/October time frame at higher prices could use this news as an opportunity to bail, and book a tax loss before year's end.
3. I wasn't crazy about the stock back in March when it was at or near its lows, and I'm still not crazy about it. Pandit and his posse still have a long way to go to win over the investment community.
Corning came out with a release yesterday where it raised its fourth-quarter volume estimates and indicated that the LCD glass market could end up being bigger than expected in 2010.
My two cents:
1. I'm upbeat about this news and think the shares could have some legs -- particularly with it trading at just 13.8 times this year's estimate.
2. If it can keep beating bottom-line expectations as it has been, I think it goes to the low- to mid-$20s.
3. The 2010 estimate could end up getting a little goose from here.
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