Citigroup’s Reverse Stock Split Scam

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

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. Ian Wyatt, of Wyatt Investment Research, is currently
recommending a lender that never needed a bailout and pays an 8.2%

Please click HERE for the details.

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