Citigroup is in all probability going to cut it's dividend 40%.?

Isn't this a sign of far worse to come.?

The trend is your friend, so quite possibly. On the other hand the fact that the stock is trading at 1/2 of its 52 week high also shows that there is alot of blood in the street and the worst for the stock may be over; it will take a little time to see what changes new management may have in store for the company in a troubled industry; trading below 30, I would rate it as a hold or weak buy; certainly wouldn't take too big of a position all at once if I were going to buy it; perhaps just best to sit back and watch the stock and any further news.

the recent losses the firm citigroup faced due to the real estate bubble burst in US along wiith the subprime crisis has incurred this firm losses of more than 20 Bn USD. Normally a firm will declare dividends only when they are having adequate money to meed business plans. Since such a loss is too big, and in order to finance newer projects to offset earlier losses, citigroup is making the right step forward. Citi group is the biggest loser @ 17.6 bn USd, followed by merril lynch, barclays capital and HSBC. with the expected results from all of these banks being negative, it is a good indication on the major correction to take place in Us and global markets. Yes, the worse is to come and has already started. If you are interested in learing this crisis, check the link http://en.wikipedia.org/wiki/2007_Subpri... happy new year.

It usually is. If you own any stock in Citigroup, sell it. However, if you are in it for the long haul, this would be a buying opportunity as the price drops. I wouldn't worry about Citibank going out of business though.