Replies to post #1366 on Citigroup Inc (C)

[BullNBear52]

The government is being kind. They set the conversion price at $3.35. Just think if it was a $1.50.

The math,

The U.S. govt is converting it's $25B investment in preferred shares and having them converted to common shares. That was announced Friday.

http://finance.yahoo.com/q/ks?s=C

The stats on the company are at the link above.

Share Statistics
Average Volume (3 month)3: 251,702,000
Average Volume (10 day)3: 505,020,000
Shares Outstanding5: 5.45B
Float: 5.40B


Right now there are 5.45B shares outstanding. After the conversion at $3.25

$25,000,000,000.00
$3.25
7,692,307,692.31 shares

7.6B shares more. And the U.S. wants private equity holders of preferrred to match them.

7.6+7.6+5.45 = ouch