Citi will do reverse stock split and resumes dividend

Yesterday, Citigroup (C) announced that it will reverse stock split of 10-to-1, every 10 shares of its stock will be exchanged for 1 new share as of May 6.  This means if today you have 1000 units of C, after May 6, you will have only 100 units of C, but the stock price will reflect accordingly.  This reverse stock split exercise will reduces the amount of Citi shares outstanding from 29 billion to 2.9 billion.

Citigroup will also pays a dividend of 1c for every share held.  The CEO of Citigroup commented that it will only start pay higher dividend or share buyback in year 2012.

One should not be too worried by this move as it is necessary for Citigroup to reduce the number of outstanding shares for a better future prospect.

Market start with a bang in September

Nice rally from the DJ on the first day of the month.  Even Citigroup (C) goes back to above 3.80.  The same goes for many other stocks in DJ.  Apple (AAPL) has been rising steadily in anticipation of a new product launch and finally it was announced yesterday, an improved Apple TV box-set.

As for KLSE, nice gain on the index but majority turned lower on the first day.  However, we see some reversal and nice gains on quite a number of counters in KLSE.  JCY registered an almost 20% gain after dropping from 1.7x to just 0.90.  Mudajaya didn't join the rally unfortunately.

Will the rally continues tonight ? Let's find out together.

DJ weakening, at 10,000 mark

After 1 day rally, DJ is back to bearish.  Once again, it is touching the psychological 10,000 mark towards the end of the trading day.  Citigroup (C) too is back to below 3.70.  Time to accumulate more capital and invest.

As for KLSE,  Maxis just announced a 1 billion net profit and giving 8 sen dividend.  The surprise is the sales of over 44,000 lots at the very end of trading day, pushing the price down by 7cents.   Wonder what's at play here.

Kfima too announced a 5cents dividend.  The stock price remain steady at around 1.16 - 1.20. A nice share to hold for long term.  I am still holding my Kfima and has been for over a year now.

Finally, Happy Holiday to all Malaysians !

Good opportunity to be part of Citigroup (C) shareholders

DJIA fell below 10,000 points briefly in the early trading day and ended with a small positive gain.  Even though the DJ managed to close green, the market is still very bearish.

Citigroup (C) closed at 3.68, which is a pretty good entry price.  My entry price was 3.82 and I'm holding it tight.  I have full confidence in C that I will make some pretty nice gain within a year.  Bear in mind, I'm not alone in this.  Many fund managers are also buying into C in huge volume.  If these billion-dollar investor are not worried, why should I ?

Bought Citigroup (C) - 19 Aug 2010

Finally, the long awaited Citigroup (C) fell to my target buying price, 3.82.  It ended 3.79 though, but one must have a target or else one will never be able to buy anything.  I've been targeting C for quite some time now but was forced to continually raise my target price in order to match my buying queue.  Nevertheless, I'm still happy that I finally own C !

KLSE remained very stubborn in terms of index.  Most foreign stock exchange were experiencing correction but not KLSE.  However, even though the KLCI is up quite a bit for the week, many counters do not share the same direction.  Could this be a window dressing for the upcoming Hari Raya festivals ?