Saturday, February 21, 2009

The 2 Buck Club

I would like to give a warm welcome to this week's newcomers to The So? 2 Buck Club (stocks that are priced under $2 a share).

Citigroup (C) $1.95: Already the reigning champion of the TARP government fund tournament, will Citigroup soon be the next winner of the government nationalization sweepstakes?

General Motors (GM) $1.77: GM presented the government with an updated plan for a "viable" and "sustainable" company. In turn, they have asked for $16.6 billion in new loans. I ask you - does it make sense to loan a company $16.6 billion when it has a market capitalization of $1.08 billion?

Saks (SKS) $1.70: Rich is just so out this fashion season.

Let's not forget about our longer standing club members:

Ford (F) $1.58: Ford actually joined the club back in October. Don't fret - all is well.

Sirius XM Radio (SIRI) $0.128: Sirius threatened at membership for years but finally joined the club back in June. Now it is pushing for the ultra exclusive 2 cent club. Nobody likes a showoff. For now that will have to wait as they have been given liberty as opposed to death.

Fannie Mae (FNM) $0.540: Fannie collapsed because they purchased mortgages of poor quality that have since gone into default. So what is our solution to this problem? We must increase the amount of mortgages that Fannie will purchase. Asian investors have issues with this approach.

E*TRADE (ETFC) $0.890: If E*TRADE fails, who will fill the void of meeting the needs of daytrading babies? The government must provide assistance to this vital industry ASAP.

Crocs (CROX) $1.15: First Crocs joined the club. Now Saks has joined. Can you say trendsetter? Plastic shoes are are here to stay baby.


Anonymous said...

The fall of C is unbelievable. BAC will be $2 next week too if this keeps up. Are they both bankrupt?