The new analysis on C

From Elite last night: Explains the pop IMO. I COULD go into how these bailouts have KILLED financials ...but i'll save that topic for later.


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athlonmank8


Registered: May 2007
Posts: 918


11-24-08 12:23 AM

It's a wash on the 20 billion. Shares get diluted 20 billion HOWEVER your balance sheet gets a 20 billion lift.

The kicker is the 7 billion preferred and the divvy cut.

40% max loss on the stock not including some of this being priced in (ex. divvy cut).

300 billion backstop is the question though. IMO that's worth way more than the preferred dilution.....unless I'm wrong.

Still don't understand how those warrants work against the stock.



C up in Japan.

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The warrants now make sense, but they're gonna stay worthless IMO. The actual kicker is that the warrants SHOULD be worth money with the 300 billion backstop.