General Question

queenzboulevard's avatar

What will happen with Wachovia stock?

Asked by queenzboulevard (2549points) September 30th, 2008

I have a friend who is investing quite alot of money in the low cost of Wachovia shares. Seeing as though Citigroup is absorbing them, smart move or stupid?

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8 Answers

gailcalled's avatar

He is buying their stock now? Today? Yoicks. It is not conservative investing and no one has a crystal ball now.

queenzboulevard's avatar

Exactly and I tried to warn him but he said it has to go up so there’s no way he can lose money.

gailcalled's avatar

Oh boy. I hope he has some cash under the mattress, or decades of earning power left.

Snoopy's avatar

@queen. No way he can lose money? If it was that easy we would all be rich, wouldn’t we?
He may win and he may lose. Noone can know for sure right now.
Best of luck to him.

flameboi's avatar

Wachovia will bounce back, your friend will make a lot of money after the turmoil…

tdnauman's avatar

be advised that Citi did not acquire Wachovia as a whole. They purchased everything but Evergreen and AG Edwards groups which will trade under WB. Citi has already purchased Wachovia for $1 & change, the acquisition to be finalized by year end. If you buy now you’re really just buying the remaining 2 groups and don’t expect big gains. In fact, I expect the stock to falter since no one really knows the value. The bulk of Wachovia is trading under Citi even though the acquisition isn’t finalized. Wall St has already divided and allocated the value.

Snoopy's avatar

very informative tdnaurman. Lurve for you!

qashqai's avatar

There are always ways to lose money.
Lehman’s stock lost 45% in one of their last days of life. Imagine your friend buying them at that time. He will soon find out that even a 1$ priced stock is worth absolutely nothing, now that Lehman Brothers is not there anymore.

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