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In response to
"just an fyi...talked to my stockperson at Morgan Stanley/Smith Barney.....regarding Citigroup...."
by
Remlik
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The preferred may drop in the short-term, but be more valuable in the long-term
Posted by
TWuG
Jul 8 '09, 07:53
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Provided, of course, that government investment (it is NOT being Nationalized, nothing has been Nationalized) is successful in turning the company around.
You may find that you are a preferred share holder in a much smaller pool of investors in a company that has true value, making your investment worth more.
I'd also question the wisdom of an advisor that uses the term "nationalized" when that isn't the case.
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