Wednesday, March 31, 2010

Citi is selling Prime America

http://www.cnbc.com/id/36111899

I do not personally like the company but I think it will be a hit. They are pricing 24 million shares at $12-$14 per share and they have the option to sell an additional 2.7 million shares if demand for the stock is strong. Last year Prime America as a stand alone unit had $2.2 Billion in revenues and $495 million in Net profit. If I am doing the math right that is about $18.53 in profit per share [$495 million NP/ (24 million initial issuance + 2.7 million Citi remaining shares)].

I think I want to get in on this one. I think the ticker is going to be PRI. I have it on my watch list so I know when it trades publicly.

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