Investing
Michael Price Hates Citigroup (C), And Wachovia (WB)
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Famed investor Michael Price, a man who has been beating up on poorly-managed companies for decades, is short Citigroup (C) and Wachovia (WB). He reasons that the worst of the credit crisis is not over yet.
According to Bloomberg, quoting Price, “This rally we’ve had, this huge rally, seems to me pretty premature,” he said. “Dividend cuts are inevitable. You’re going to have to see them. How can they pay out dividends if they have to raise capital?”
Pair this with the Greenwich Associates survey from yesterday in which 60% of the institutional investors polled said they expect a large financial company to fail in the next six months and the sentiment against bank shares has taken a vicious turn for the worse.
Douglas A. McIntyre
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