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To: cubsfan who wrote (4990)	2/27/2009 8:05:17 AM
From: RockyBalboa	Read Replies (2) \| Respond to of 6370

C... picked up some stock at 1.30 and below...for fun reasons... some Citi preferreds are free money. Complete throwup, they are scattered all over the place. Unfortunately I have now no time to read the OCs for the prefs.. :( The tendency would normally be that the preferreds also go down, because they no longer pay a dividend. But some behave very oddly. Dangerous stuff where one has to feel out premarket supply / demand. The preferred I is up 80%. This is stuff which could kill one. Lehman preferreds dropped from 300 to 1.50, and Wachovia preferred traded at few bucks and then hit $20. The other thing today could be a 6 handle on the dow...

To: cubsfan who wrote (4990)	2/27/2009 8:40:19 AM
From: RockyBalboa	Read Replies (2) \| Respond to of 6370

Small update: Some nimble person pointed out to me that C prefs don´t necessarily fall. First, the divvy cut is long anticipated. Second, the CDS spreads in C contracted by a mile pre hours on the bailout. So he told me, unlike the common stock which is heavily diluted, there is now much less in preferred stock (as the government converted it). This means that naturally prefs must go up in price (at least relative to common) and not down. The dj low was in spitting distance to 7, (12 points). Oddly. the citi stock recovered to 1.77 (from 1.25) LOL.