Posted
11/21/2008 09:30:00 PM
by Douglas
Citibank well on its way to becoming a
penny stock.Citigroup's stock plunged below $5—a 13-year low—and the banking giant's troubles may be just beginning.
Most institutional investors and pension funds are barred from owning stocks below $5. So if Citigroup's stock remains below that level, it could trigger a wave of selling that would send the share price even lower.
"That's the danger of crossing that $5 threshold," says Owen Malcolm, senior vice president of Sanders Financial Management in Atlanta. "They're (Citigroup) already in trouble. It could get worse."
And that was yesterday. It closed under $4 today. This is going to get ugly.