Today, Citibank(C) traded over 1.1 billion shares. Volume has been through the roof as speculators sniff out a short sqeeze. Currently, Citi’s short interest stands at 1.2 billion shares, or nearly 1/5th of the companies public shares, and with many anticipating blockbuster earnings, the price has gone up nearly 40% in only 5 days.Many have attributed this re-valuation of Citi to the recent accounting changes, where mark to market accounting rules were eased.
Many people liken this scenario to the events we saw unfold with Porsche and Volkswagen, which saw Volkswagen breifly the worlds most expensive company by market cap. The difference in this scenario though, is that Citi is on its last legs, while Volkswagen is very much viable.