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IMO, it's crazy to short a stock at a multi-year low, even more becauseit's at a multi-year low.
C could come close to oversold due to panick selling.
True the news are not good for them and for any bank, but it's price per share has fallen 36%, which is huge for a behemot like C. Now the P/E is 7.6, after this summer's losses. The dividend is 6% and it will be surprising that they cut it.
If they cut the dividend, that will pull the stock much lower but they won't do so unless they are dangerousely in the red and they still make lot of money. Companies cut their dividend when they start losing money, that's why I say it would be surprising.
Long term, C and banks won't have to write off anymore or lose money on bad mortgage papers because the financial entities are very concious of the issue and have reacted well on time. In one year, this crisis will be History.
If C keep on falling like crazy, it will be a good oportunity. It will certainly be back over $40 in 6 to 12 months.
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