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Chance of a lifetime?

Discussion in 'Uncategorized Threads' started by chatbrat, Mar 25, 2008.

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  1. chatbrat

    chatbrat TS Member

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    To anyone out there this is the chance of a lifetime, it is an election year & the Fed is changing the direction of the stock market. The real effects of the recent monetary changes will hit in approx 10 months. The market anticipates these effects. I'm not telling you to buy anything. But look into the market, look at the best of the best, I bought a load of Citibank--it pays over 5% in dividends & is way below its high of $55.00----this is how you can afford $50.00/bag of shot----Phil
     
  2. halfmile

    halfmile Well-Known Member

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    Your dollar as it appears to the rest of the world.

    Thousand dollar gold is telling you something.

    HM
     
  3. Joe Potosky

    Joe Potosky Well-Known Member

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    Maybe you can change there anti-gun policy....

    January 9, 2008

    Citi/First Data Anti-Gun Policies Stir Controversy, Calls for Boycott

    The news that Citi Merchant Services and First Data have refused to process sales for guns and gun accessories has spread like wildfire across the internet, arousing the ire of gun owners around the country. The story broke when the NSSF reported that Citi Merchant Services and First Data terminated the merchant account of CDNN Sports, a large, Texas-based gun retailer. There have been calls for the boycott of Citicorp/Citibank/Citi-Card products, as many gun owners have vowed to close their Citibank accounts or terminate their Citi-affiliated credit cards.

    Interestingly, this isn’t the first time Citicorp/Citigroup has faced a boycott threat from gun owners. In 2000, after Citibank imposed a “no firearms” policy on a Nevada gun range, firearms owners nationwide responded with a boycott that caused Citibank to alter its policies.

    The Year 2000 Citibank Boycott

    As reported by the Second Amendment Foundation (”SAF”), the “Battle began with a February 7, 2000 letter from Citibank to the Nevada Pistol Academy stating that their recently approved account would be closed in ten days ‘due to Citibank not maintaining accounts for businesses that deal in weapons.’ This letter revealed an otherwise secret policy of refusing accounts from lawful, Federally-licensed firearm-related businesses.” In response to a threatened boycott from the SAF and other firearms groups, Citibank, a member of CitiGroup, agreed to drop its policy of refusing accounts of lawful firearms businesses. Citibank agreed to treat small firearms sellers the same as other businesses “using the same standards” according to a Citibank media statement.

    Citicorp and First Data Alliance

    Fast forward to 2008 — In the current dispute, some folks have wondered whether Citicorp is directly involved in the denial of card processing services to CDNN Sports which sparked the controversy. The answer is yes. Though First Data provides processing solutions, Citi Merchant Services handles the actual banking end of the card processing. First Data explains: “Citi Merchant Services provided by First Data Merchant Services Corporation is a contractual alliance in the U.S. between Citicorp Payment Services, Inc. (CPSI) and First Data Merchant Services Corporation (FDMS). FDMS provides all the systems, technology, processing services and customer support to the alliance. CPSI is the sponsoring card association member and provides the clearing and settlement functions on behalf of the alliance.”
     
  4. chatbrat

    chatbrat TS Member

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    Joe I wish I could change their anti-gun policies, I don't have any credit cards from them I USE the money I make off of CITI---they bought me a new INFINITY (Dennis DeVault's shotgun)---so far this week----Phil
     
  5. halfmile

    halfmile Well-Known Member

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    Funny, I have a Citi sponsored Sears card. Just bough a thousand 223 brass, and recently some bulk bullets.

    Maybe the gun police were on break.

    This needs follow up and verification.

    HM
     
  6. Jeff P

    Jeff P Well-Known Member

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    Phil,

    I think your idea has real merit. But I did have a couple of questions....

    -do you have any idea as to why Citibank is 60% (or so) off its high? since it's down so far, I'm concerned that someone might know something I don't...

    -And is the dividend secure? that is, are they going to keep paying it?

    -Lastly, how long have they paid that juicy $1.28 dividend? Been long?

    Oh, I did have a couple more questions: Since the price of a stock can be expressed as a function of its earnings times the multiple, I notice that C currently trades at 37.7 times its earnings of $.62. Now, clearly, for the price of a share of C to increase so I can afford that $50 shot, either the earnings has to increase (so that perhaps C earns $1, and we'll pay 37 times that number, or $37 a share), or the multiple has to increase...in other words, C still earns the same sixty two cents, but maybe I'd be willing to pay 50 times that amount, or $31 a share. I'm hoping you can quantify the price move up in C so that we can all know when to sell it....

    Lastly, what is the historical P/E ratio of a high quality stock in the financial/banking industry? Also, could define what a "load" of Citibank is? I could be in for as many as 1,000 shares at that price. Especially if it's going to do well.

    I need the big gains...i'm about out of shot.

    Jeff
     
  7. Jeff P

    Jeff P Well-Known Member

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    Gosh, I didn't think my questions were all that hard...but here we are a day later, and no answers.

    I hate missing out on a good thing, though. Any help, chatbrat?

    I did see that Citigroup was down over a buck today, some 5.7%. I guess I can cover that out of the first quarter's dividend payment, right?

    jeff
     
  8. chatbrat

    chatbrat TS Member

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    Jeff I'm an investor not a trader, I'll live with the 10k shares I bought & the dividends will be fine---if I get a 20% bump I'll bail, but I'll ride it out---beats CD's---I'm retired it is a good bet---if C goes under Oh well---another bad bet----can't win them all---I feel it is a win win in the 2 year time frame----Phil
     
  9. Jeff P

    Jeff P Well-Known Member

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    LOL...Phil, that changes everything. You sounded an awful lot like a trader in your 1st post. I was trying to bait you into admitting you were pushing a stock for a trade you know nothing about.

    clearly, that's probably not the case. It is possible (though unlikely) that C will go broke...in which case we'll go broke together, you and I - since I own a slug of it too. JPMorgan is probably an even better choice for the next 2 years, but they're both very good, in my opinion.

    You want another interesting one to check out...look at Pinnacle West Corporation (PNW). It pays almost 6% in yield. It interests me because it's the Arizona utility, so I consider the divedend reasonably secure, but they have a real estate arm that's got them down a quick 6 points. I think on that one i get paid 6% to wait until land and real estate in that part of the country come back. I'm just now building a position in it, learning more about the company and buying as I go to average in.

    But don't take my word for it, do your homework. I'm not recommending it, either...just that it interests me.
     
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