By: Lost-in-America

Lost-in-America — Sat, 17 Jan 2009 11:58:12 +0000

I just sold my Pinnacle yesterday. I was in US for work after LB collapse and find out from the ground that most people believe that many more banks and companies will fail this year. True enough, today alone National Bank of Commerce (Illinois) and Circuity City are history. More will come, only 25% to 30% done, I believe. Some big tech companies are also in big trouble.
Wave 2 of the financial tsuinami just started 2 days ago with BOA and Citigroup. BOA got help from treasury for ML while Citi has to sell away their crown jewel to stay alive and break the company into 2. Many people (amercians especially) are skeptical if they will survive. The share price tells me the belief of investors. Citi share price plunge to $3 again, the 2nd time since Nov 08, a “penny” bank stock now.
BOA has been the US banking icon, never in the red, and increase dividends every year for 25 years (cash rich), not even DBS or UOB can do that. But it’s just $2 away from a penny stock although I don’t believe US government will let national icon fail. With even BOA in this state, I feel that there is high chance that MS will disappear by next year through some means, bankrupt, nationalise, merge, sold, etc. The unknowns are too much for me to bear. So better to take back a small amount now. Anyway, they are just my opinion, you have to make your decision. I made mine after 3 months of painstaking reading, observing and thinking, very very painful decision. Good luck.

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By: Lost-in-America