Fwd: Gone in 60 Days: Citi and Bank of America Won't Live to See May ...... CHARTINGSTOCKS.NET
siddhartha battina
From: Paul Johnson <pa...@sigma-derivatives.com>
Date: Fri, Feb 20, 2009 at 9:22 AM
Subject: Gone in 60 Days: Citi and Bank of America Won't Live to See May ...... CHARTINGSTOCKS.NET
To:
Gone in 60 Days: Citi and Bank of America Won't Live to See May
Thursday, February 19, 2009 16:21
Posted in category BAC, Bailout, C, Media, Special Reports, Stock Market
Citigroup (C) and
Bank of America (BAC) won't live to see May. The government will take
them over within the next 60 days. The announcement may come as soon as
tomorrow evening.
If there's one thing our readers know, it's that ChartingStocks.net has made some bold calls in the past which seemed controversial and highly unlikely at the time. Our January 2007 post warned of the coming stock market crash at a time when the market was making new all time highs. In February 2007 we warned about the breakdown of the brokerage stocks and singled out Bear Stearns (Trading at $160), Merrill Lynch (Trading at $87), and Morgan Stanley (Trading at 78). In September 2007, we warned of a selloff in the coming weeks. The market peak and decline began 4 weeks later.
We're going to make another bold prediction. Bank of America and Citigroup won't live to see May. The two banks will be nationalized in the coming weeks, and we think that the announcement can come as soon as tomorrow evening (Friday evenings are when major bank announcements and failures occur).
The US government has already committed half a trillion dollars to these two
firms which is more than 10 times the amount it would cost to buy and control
both companies. The market doesn't believe that $500 billion is enough to
save these companies.
All the kings horses and all the kings men can't put humpty dumpty
back together again.
Today both banks made fresh new lows with Citi closing at $2.51 and Bank of America closing at $3.93. The 1 year charts below show the short term price movements. You should understand that when a bank stock's chart looks like this, even a HEALTHY bank would be in trouble. Nobody wants their deposits tied up in a company that trades at $2. The outflows of deposits from Bank of America and Citi must be catastrophic.
The stock charts and potential run on these banks are not the only basis for our opinion. The media can be an excellent investing tool if you know how to decipher the news. We don't watch the news for the information, we watch if for THE LIE.
We play close attention to air time given to so-called "Experts" and the way the media spins the information. If you know that our mainstream media is simply a licensed PR firm for the US government, you can get vital information which you can use in trading. Always ask yourself - What opinion are they trying to insert? What are they selling? What's the underlying agenda?
The government uses the media to float policy before the public so it can digest it. By the time the government takes the action, most people not only anticipate it but are even asking for it.
In the past two weeks there have been countless debates, op-ed's, and even opinion polls regarding bank nationalization. The popular opinion among the establishments "Experts" is that nationalizing the banks may be the only way. Even Alan Greenspan, a LIBERTARIAN, recently said that it would be a good idea. It's coming folks! It's what the establishment wants. (Sidenote: They may not actually use the word nationalization, even if thats exactly what they do)
Below is the long term view of BAC and C. These stocks have made multi
decade lows. Other stock charts which looked similar to these were Fannie Mae,
Freddie Mac, Lehman, Bear Stearns.
What happens to the shareholder? We can only speculate that the deal would look something like the takeover of Fannie and Freddie. We believe that the common and preferred shareholders will be wiped out while the bondholders MAY be protected.
Paul Johnson
Senior Analyst
Sigma Derivatives
2nd Floor
4 Broadgate
London
EC2M 2QS
Tel: 020 7965 4666
Mob:07917 163 059
Fax: 020 7965 4664
Notice of Confidentiality
This e-mail is intended only for the person to whom it is addressed. If an addressing or transmission error has misdirected this e-mail, please notify the author by replying to this e-mail. If you are not the intended recipient you must not use, disclose, print or rely on this e-mail. The information contained in this email including any attachments is solely for the attention of the addressee(s) and may be confidential. Any review, distribution or copying of this email or any attachment is prohibited. Any views or opinions are solely those of the author and do not necessarily represent those of Sigma Derivatives unless specifically stated.
"Sigma Derivatives" is the trading name of Sigma Derivatives Limited (Co. Reg. 05247316) of 2nd Floor, 4 Broadgate London EC2M 2QS
Praveen Yerra
1) High risk of run on the bank by depositors
2) Media used by govt for floating policy.
Havent been following the news, but believe Nationalization policy is
being floated.
Citi and BankAm finances are pretty screwed and are desperately
seeking capital. Risk of them going down is pretty evident by the
stock prices. Government cannot allow these banks to go down (will
screw economy even further) and so nationalization is the option (Not
sure if debt package costing 10 times more is true but does definitely
seem unviable and also would not bring confidence to economy)
On Fri, Feb 20, 2009 at 3:31 PM, siddhartha battina <sid...@gmail.com> wrote:
>
>
> ---------- Forwarded message ----------
> From: Paul Johnson <pa...@sigma-derivatives.com>
> Date: Fri, Feb 20, 2009 at 9:22 AM
> Subject: Gone in 60 Days: Citi and Bank of America Won't Live to See May
> ...... CHARTINGSTOCKS.NET
> To:
>
>
> Gone in 60 Days: Citi and Bank of America Won't Live to See May
>
> Thursday, February 19, 2009 16:21
>
> Posted in category BAC, Bailout, C, Media, Special Reports, Stock Market
>
> The stock charts and potential run on these banks are not the only basis for
> our opinion. The media can be an excellent investing tool if you know how to
> decipher the news. We don't watch the news for the information, we watch if
> for THE LIE.
>
> We play close attention to air time given to so-called "Experts" and the way
> the media spins the information. If you know that our mainstream media is
> simply a licensed PR firm for the US government, you can get vital
> information which you can use in trading. Always ask yourself - What opinion
> are they trying to insert? What are they selling? What's the underlying
> agenda?
>
> The government uses the media to float policy before the public so it can
> digest it. By the time the government takes the action, most people not only
> anticipate it but are even asking for it.
>
> In the past two weeks there have been countless debates, op-ed's, and even
> opinion polls regarding bank nationalization. The popular opinion among the
> establishments "Experts" is that nationalizing the banks may be the only
> way. Even Alan Greenspan, a LIBERTARIAN, recently said that it would be a
> good idea. It's coming folks! It's what the establishment wants. (Sidenote:
> They may not actually use the word nationalization, even if thats exactly
> what they do)
>
> Below is the long term view of BAC and C. These stocks have made multi
> decade lows. Other stock charts which looked similar to these were Fannie
> Mae, Freddie Mac, Lehman, Bear Stearns.
>
> What happens to the shareholder? We can only speculate that the deal would
> look something like the takeover of Fannie and Freddie. We believe that the
> common and preferred shareholders will be wiped out while the bondholders
> MAY be protected.
>
>
>
>
>
> Paul Johnson
>
> Senior Analyst
>
> Sigma Derivatives
>
> 2nd Floor
>
> 4 Broadgate
>
> London
>
> EC2M 2QS
>
> Tel: 020 7965 4666
>
> Mob:07917 163 059
>
> Fax: 020 7965 4664
>
>
>
> www.Sigma-Derivatives.com
>
> Notice of Confidentiality
>
> This e-mail is intended only for the person to whom it is addressed. If an
> addressing or transmission error has misdirected this e-mail, please notify
> the author by replying to this e-mail. If you are not the intended recipient
> you must not use, disclose, print or rely on this e-mail. The information
> contained in this email including any attachments is solely for the
> attention of the addressee(s) and may be confidential. Any review,
> distribution or copying of this email or any attachment is prohibited. Any
> views or opinions are solely those of the author and do not necessarily
> represent those of Sigma Derivatives unless specifically stated.
>
> "Sigma Derivatives" is the trading name of Sigma Derivatives Limited (Co.
> Reg. 05247316) of 2nd Floor, 4 Broadgate London EC2M 2QS
>
>
>
--
Regards,
Praveen Yerra
Class of 2008, IIM Calcutta
Class of 2003, IIT Madras
Mob: 91 - 9930070734