Value Oracle

The Truth About the American Economy

2011-06-05T20:38:00.001+08:00

How did we go from the Great Depression to 30 years of Great Prosperity? And from there, to 30 years of stagnant incomes and widening inequality, culminating in the Great Recession? And from the Great Recession into such an anemic recovery? The answers are right here.

EconoMonitor : EconoMonitor » The Truth About the American Economy

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DISCLAIMER - By The Oracle of Value.

Citigroup Announces Reverse Stock Split Intends to Reinstate Common Stock Dividend of $0.01 per Share.

2011-03-26T18:08:00.005+08:00

The reverse stock split will have possible impact on the stock price as it may put the stock back on the buying list of mutual funds.

Check out the press release below:
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Citigroup Inc. (NYSE: C)March 21, 2011

Citigroup Announces Reverse Stock Split Intends to Reinstate Common Stock Dividend of $0.01 per Share

New York – Citigroup Inc. today announced a 1-for-10 reverse stock split of Citigroup common stock. Citi also announced that it intends to reinstate a quarterly dividend of $0.01 per common share in the second quarter of 2011, following the effective date of the reverse stock split.

"Citi is a fundamentally different company than it was three years ago," said Vikram Pandit, Chief Executive Officer of Citigroup. "The reverse stock split and intention to reinstate a dividend are important steps as we anticipate returning capital to shareholders starting next year."

Citi anticipates the reverse stock split will be effective after the close of trading on May 6, 2011, and that Citi common stock will begin trading on a split adjusted basis on the New York Stock Exchange (NYSE) at the opening of trading on May 9, 2011. When the reverse stock split becomes effective, every ten shares of issued and outstanding Citigroup common stock will be automatically combined into one issued and outstanding share of common stock without any change in the par value per share. This will reduce the number of outstanding shares of Citigroup common stock from approximately 29 billion to approximately 2.9 billion. Citigroup common stock will continue trading on the NYSE under the symbol "C" but will trade under a new CUSIP number.

No fractional shares will be issued in connection with the reverse stock split. Following the completion of the reverse stock split, Citi's transfer agent will aggregate all fractional shares that otherwise would have been issued as a result of the reverse stock split and those shares will be sold into the market. Stockholders who would otherwise hold a fractional share of Citigroup common stock will receive a cash payment from the proceeds of that sale in lieu of such fractional share. Additional information on the treatment of fractional shares and other effects of the reverse split can be found in Citi's definitive proxy statement filed with the Securities and Exchange Commission on March 12, 2010.

Citi is executing its strategy of focusing on its core businesses in Citicorp to support economic growth including banking, providing loans to small businesses, making markets and providing capital, while continuing to wind down Citi Holdings in an economically rational manner. At the end of 2010, the U.S Treasury sold its remaining shares of common stock, earning in total a $12 billion profit for taxpayers on its investment in Citi. 2010 was Citi's first year of four profitable quarters since 2006, with $10.6 billion of net income. Citi's capital strength is among the best in the industry and the bank is focused on putting its unmatched global network to use for its clients to foster sustainable and responsible growth.
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Despite the continuing Credit Crisis in Europe, Citi's fundamentals had improved significantly in 2010. It is a bullish call on Citi. BUY

Happy Valuing........ End of post.
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DISCLAIMER - By The Oracle of Value.

WARREN BUFFETT (WORLD'S RICHEST INVESTOR): HIS SECRETS REVEALED!!!

2011-01-15T01:24:00.007+08:00

Simplicity is the key................

This is a video dated back to December 2007, but the wisdom is never obsolete. Simply live, simply awesome, simply profitable investments..........

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DISCLAIMER - By The Oracle of Value.

VIX - the fear factor for S&P500....

2010-12-08T02:29:00.002+08:00

The first VIX, introduced by the CBOE in 1993, was a weighted measure of the implied volatility of eight S&P 100 at-the-money put and call options. Ten years later, it expanded to use options based on a broader index, the S&P 500, which allows for a more accurate view of investors' expectations on future market volatility. When a large number of traders become fearful (when they want to buy a large number of put options, say, to hedge their long positions in stocks) then the VIX rises. Conversely, when complacency reigns, the VIX falls.

The VIX is sometimes used as a contrarian indicator (especially at extremes) and therefore can be used as a measurement of how oversold or overbought the market is. During the bear market of 2000 to late 2002, a VIX reading of 20 is usually an indication of an overbought market, while a reading of over 40 is usually an indication of an oversold market.

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DISCLAIMER - By The Oracle of Value.

WEB EXTRA: Warren Buffett on WMD

2010-12-04T00:28:00.004+08:00

The wise man likes weapons than his investments.....

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DISCLAIMER - By The Oracle of Value.

Value Oracle - The Oracle of Value

2010-08-18T15:44:00.005+08:00

In 1934, Benjamin Graham wrote: "It is an almost unbelievable fact that Wall Street never ask how much is the Business selling for?" His student, the Oracle of Omaha, Warren Buffett said: "I buy good business at a deep discount to its intrinsic value and keep it forever". What are these two elite investors telling about investing? Clearly, they are talking about value.

Value is the core to all investments and it is even the core to our lives. It is not about the bull market or bear market, but the right market. Every single investment, such as stock, commodity, forex, index or any other derivative instruments, is a market of itself. Without the Oracle of Value, the market will never be right.

Every one of us may have different investment styles and reasons to invest and/or trade, such as investing for long-term asset appreciation or trading for short-term income. But the objective is the same. Valuing the probability of the right market for correct investments to allocate capital effectively with a single mission in mind: "Make Money"........ This is Value Oracle, the Oracle of Value.

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DISCLAIMER - By The Oracle of Value.

QQV - the fear factor for QQQQ

2010-01-02T02:34:00.009+08:00

The QQQQ Volatility Index (QQV) is an indicator of investor sentiment about the future volatility of the Nasdaq-100 Index Tracking Stock^SM (QQQQ). QQV is expressed as an annualized standard deviation of returns. Calculation of the QQV Index began on September 27, 2000. The American Stock Exchange (Amex) began publishing the QQQQ^SM Volatility Index (Ticker Symbol: QQV) on Tuesday, January 23, 2001. The index is published daily every 15 seconds between approximately 9:30 a.m. and 4:15 p.m..

More information about the QQV, including calculation, methodology and applications, is available on The American Stock Exchange (Amex) websit.

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DISCLAIMER - By The Oracle of Value.

China needs more iron ore than coal

2009-10-18T00:37:00.044+08:00

Flipped through the news paper last night, realizing that Chinese manufacturers who faced the brunt of the collapse in export demand in late 2008 are slashing costs and cutting prices just to stay afloat. The trade surplus fell to US$12.9b in Sep'09 from US$15.7b in Aug'09. Exports grew 6.3% while imports were up by 8.3% from Aug'09 to Sep'09. The major driving forces behind the sharp improvement in imports are, no surprise, commodities. A record 65mil tonnes of iron ore were imported in Sep'09, 30% higher than Aug'09. Copper registered a 23% increase in Sept'09 too.

Very clear, Chinese manufacturers are unable to pass the higher material costs to their customers, especially the US and EU consumers. It also indicates a very strong internal demands for raw materials. It seems Beijing's 4 trillion yuan stimulus package has helped to revive the economy through heavy spending on public works, especially the national railway systems. Given such a huge geographical coverage, China needs more iron ore than coal. As long as China continues its massive public expenditure and Chinese manufacturers continue to absorb the higher material costs, Mr. Ben Bernanke, the US Fed's chairman, will find no reason to raise interest rate. But how long the Chinese manufacturers can keep the price down?

In the Pearl River Region, Guangdong province, thousands of electronic companies are relocating their business to other provinces to reduce costs or shut down. Thousands of plastic factories close their production plants. The industries are consolidating and emerging. Manufacturers realize that price competition alone would kill the business. Eventually, the higher raw material costs will pass on to consumers, especially the US and EU.

Happy Valuing........ End of post.
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DISCLAIMER - By The Oracle of Value.