Citigroup's Reverse Stock Split Scam
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Citigroup stock traded in the $40s in October 2007, before its mortgage misdeeds drove the price down to a low of 97 cents in March 2009.

Yesterday's 10-for-1 reverse stock split has put the share price back in the $40s, but that doesn't change the fact that Citi's value was dramatically impacted by secondary share offerings.

It sold 7.7 billion shares to the U.S. Treasury for emergency funding in 2008. It sold another 5 billion shares in 2009 to help pay back TARP loans.

Citi's reverse split helps cover up these desperate stock offerings that diluted shareholder value. But the company itself is far from healthy, which is why it can only afford to pay $0.04 annual dividend.

Investors are advised to seek out healthy banks with strong dividend payments. I've recently added to my portfolio a lender that never needed a bailout and pays an 8.2% dividend.

Please click HERE for the details.

Posted 05-10-2011 3:51 PM by Ian Wyatt
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