Bought 600 Shares of Citigroup

Well, I didn’t get it when the stock was traded below $1 a share for the first time ever, I actually got in a little early.

I sold 360 shares of HTX that I bought on December 4 last year (made a little profit from the trade) and used (part of) the money to buy 600 shares of Citigroup (C) at $1.05 a piece. Did I just catch a falling knife with my bare hands?

Citi stock (C) below $1

Four months ago I was wondering whether the stock was buy back then. The difference between now and then, of course, can be seen clearly from the price of the stock: Then $9, now $1. Can it go even lower? That’s entirely possible, given how much C has come down this year already. But I still like to take my chance with this dead mouse. Let’s see how high it can bounce :D

*Chart from INO

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14 Responses to “Bought 600 Shares of Citigroup”

  1. Super Saver |  Mar 05, 2009 at 9:11 pm

    Who’d ever thought Citi would break the buck? It’s like buying a call option with no expiration date:-)

    Could be good buy if Mark to Market is suspended temporarily. A panel is meeting on this topic on March 12. Financials would probably go up 100% after the suspension.

  2. Tim |  Mar 06, 2009 at 8:02 pm

    i keep promising myself i would stop buying citi, but every time it declines a dollar or two i end up buying another 1000 shares. i’m gonna buy another 3000 shares next week once i get my travel reimbursement. i really need to stop buying it though. it’s a bit like a drug to me. unlike wamu (which i bought heavy on the way down and sold when it spiked before going to pennies), citi has 50/50 chance of coming out of this. I like those odds at $1pps considering any ticket even to the govt conversion rate of preferred stocks over $3pps is 300% gain at this point. i like those odds for the money.

    i need to stop buying GE as well. i really should be buying XOM, but i keep delaying.

  3. Sun |  Mar 09, 2009 at 9:23 pm

    @Super Saver: Thanks for the mark-to-market information. I didn’t know there’s a hearing scheduled on that topic. Let’s just hope the rule will be suspended temporarily for the good of the financial stocks.

    @Tim: Right now I feel that if big banks like Citi and BofA don’t report any more huge losses, their stock could start to recover. After almost a year, haven’t bad news come out already? Is there any more shoe to drop? I don’t know but I feel the worst is already behind us. At the current level, the stocks could go up a lot if there’s any good news. It’s a gamble, especially with Citi, but like you, I like to take my chance. Actually, I may buy more shares of Citi. Not too much to lose at $1 apiece :)

  4. Tim |  Mar 10, 2009 at 12:36 pm

    Pandit says Citi operating last two months at a profit. whoohoo for all my shares i bought these past two weeks. you are right, not much to lose at $1/share

  5. Sun |  Mar 10, 2009 at 12:44 pm

    Citi is up 36% today. That’s a very nice bounce. Wish I have my money ready sooner so I can buy a little more.

  6. Buy My Stock Picks |  Mar 16, 2009 at 7:50 pm

    Hey ! I hope you sold them at $2.50 today… that’s an easy way to make a quick buck.

    Do you think it can go even higher or the (unjustified) hype will be over this week? We saw the market slowing down this afternoon (even the TSX was much higher at noon even if it gained 1%).

    I’m not quite sure we should listen to the same guy who brought us in this mess and now believing they tell the truth!

  7. Sun |  Mar 17, 2009 at 7:39 am

    I bought the stock when the price was close to the lowest level. If that’s the bottom, then the stock can only go up. No, I didn’t sell my shares and won’t sell them any time soon. 150% gain is nice, but not what I am looking for.

  8. matt |  Dec 26, 2009 at 4:52 pm

    I bet you made a killing off C if you kept it until now. There was a story about a financial advisor that did the same and made a fortune

  9. Jim57 |  May 11, 2010 at 8:35 pm

    It is time. C has weathered the worst of it. It had a successful quarter. It is reasonable to expect futre succeess. It has handled much of the worse. Cramer sees the upside potential.

    • Sun |  May 11, 2010 at 8:57 pm

      The best time to buy financial shares, including Citi, may have already passed. It will take a long time before the share can reach its pre-crisis level.