It is not uncommon for the stock market to have stocks drop a huge amount in price. It could be a result of a huge press release, a recession or just for no reason at all. The most recent one was after the United States presidential election. It was pretty strange as it had caused a huge drop in price but we have not seen prices that low since.
My question to you guys is when do you buy a dip in the price of a stock or the market? Is it a good trading idea for you guys or is it too risky?
That's a flippant term without any value.
Bank of America - Anyone looking to buy on a dip? (Originally Posted: 08/08/2011)
Down roughly 15%. Anyone looking to buy on a dip? Thoughts? Concerns?
Horribly run company, pretty much impossible to value, and hedge funds are running away from it like it's the plague.
Bottom line: I wouldn't go near it.
You do realize bank of america less countrywide litigation and headaches is performing pretty well. Shows how much you research before reaching an opinion
maybe...when it gets to 6
maybe...when it gets to 99 cents
36% book value... tough call, lots of legal liabilities, big exposure to any potential recessionary tightening. Risky.
any one confirm/deny they are being destroyed by shortsellers and rumors
PLEASE
I think long long long term BoA turns out okay provided the US economy gets back on track.... short-term good chance they retest the $3-$4 levels.
Did you all catch on CNCB the ratio spread recommendation where you make money on short till it hits $0.10? Only saw the last few seconds of it. I have to agree with Luicdfighter that it ill flirt with $3
I don't cover financials so I'm sure there are people here that understand banks a lot better than me. That being said, fundamentals are not driving BAC anymore. Beyond that, it is pretty hard to have any confidence in BAC fundamentals.
At this point a private sector equity raise is out of the question. There is no way the market would float it, and it would be so dilutive at this point it would probably do more harm than good. If their actual mortgage exposure is more along the lines of $20 billion rather than $8 billion, their capital ratios are too low. I'm not sure how much merit there is to the AIG suit, but it doesn't really matter. The sharks smell blood. If Fairholme or Paulson get slammed with redemptions, more pressure on the downside. If the call with Berkowitz on Wednesday actually happens, it could reveal a lot of information. I'm guessing BAC will be more concerned with making it to Friday than placating the Fairholme fund though. Bottom line: there will be government intervention on BAC.
If anybody on here would like to offer a counter opinion I would gladly welcome that. I mean that in a curious rather than combative way, its not a sector I cover and would love to hear an informed counter-opinion.
http://professional.wsj.com/article/SB100014240531119040073045764967131…
"The bank this fall is expected to announce some job cuts and expense savings as a way of showing investors Mr. Moynihan is getting a handle on the company. "
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