November 21, 2008 at 10:00 am by Tom Lydon
Mortgage lender Freddie Mac (FRE) could be de-listed from the NYSE, continuing the troubles that have plagued financial exchange traded funds (ETFs) for much of this year.
Since the company’s share price has been under $1 for more than 30 days, they have been warned of their possible removal. They have been given six months to rectify the situation. The NYSE requires that the average closing price of a stock remain above $1 per share.
Freddie Mac has six months from Nov. 17 to bring its common stock and average share price for 30 consecutive trading days above $1, reports the Associated Press.
Oil prices have remained supported by stocks as of Friday. However, the health of the oil industry is limited. The recent reflection of the drop in oil displays how correlated oil remains to equities which leaves the possibility for more volatility, reports George Jahn for Associated Press.
In the United States, gasoline prices at the pump fell by more than 1 cent overnight to $1.989 nationally. It’s the lowest level since early 2005, according to auto club AAA.
David Goldman and Aaron Smith, for CNNMoney report that the nationwide average price dropped to $1.989 a gallon, down from $2.02 on Thursday. Gas has gone from a record $4.11 and back down to $2.00. For the first time since March 2005, we are enjoying the lows once again. One analyst is calling for a nationwide low of $1.75.
Citigroup (C) is another stock whose fall is unstoppable, and with shares below $5 for the first time in 13 years, the pressure is on and Chief Executive Vikram Pandit may have to step down.
By falling below $5, many mutual funds and institutional investors – in particular pension funds — must unload shares of Citigroup to comply with investment guidelines, reports CNBC . Reports that a strategy is in place with a possible merger or cash raising tactic may help raise the firm’s stock price, but the company denies this. Pandit blames “rumor mongering” on the problems, and says that the company’s capital position is very strong, reports Henry Blodget for Tech Ticker.
Subscribe to Our RSS Feed
