BAC rallied considerably today but does any one else share the sentiment that its a steal right now? Even at $10? The stock has just gotten beaten to high hell with the legacy mortgage issues they inherited with countrywide. I personally think that although they settled for around 8.5 billion, they handled the situation relatively well. Moynihan inherited a pot of shit when Ken Lewis went on a spending spree starting in 06 with us trust, countrywide, Merrill. Throw in basel regulations on capital requirements (which they will have no problem meeting) and there has been nothing but shit sentiment on BAC. The stock is still trading at half of its BV per share and i think its severely undervalued...anyone else agree or am i raving lunatic
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Let them post a > 1c dividend, this will show us they are competent and problems are behind them! Honestly dividends don't mean shit except for old people raw % increase > dividends, but again once they make a > 1c dividend then yes I would buy. Granted once they say div > 1c the stock will prob get about a 10% gain followed by a 2% loss or 1.2% increase on day two, good risk reward as the 1.2% decline on day two will be beat by about 4% gain through day 3/4/5/ weekend close.
Conclusion - soon, but not yet need more substance might be a good buy here. Remember if you enter now you will be entered before August 2nd with a 50% chance of debt deal being a fail. You won't be able to fall back on BV when treasuries get sliced to pieces .
Good stock to put on shopping list for sure.
Would love to know where you got that "50% chance of default" number... the rally today was due in large part to a number of reasons: euro bailout plan, blackrock blowing out earnings and YES you are right MS.
lol debt talks broke up emergency meeting at 11 am; 11 more days till default ...
is bac still a buy
the only reason why bac rallied was because of Morgan Stanley wtf are you smoking
Shorted the fuck out of MS today. I'd like to see PIMCO finish their bitchslapping of the MS prop desk. Then I retire early.
I got in at 9.50 after earnings. Definitely has it's risks but market expectations are shit and I expect it could trade back up to near $15 LT.
my BAC is waynhigher than that shitt right now
50% chance of default = possibility =/= probability
possibility = 100 / out comes; what are all possible out comes = it passes or doesn't pass
probability p --> 0 > p > 1 ; what is the probability of A over B when both A and B have a 50% possibility. True A is more likely so it has a 70% probability of B, but B still has a 30% probability, but A still only is 1/2 or 50% of whole possibility...
now if I was to say it has a 50% probability of default that would be wrong because that is more 100% only a matter of time
can some one confirm this or did I fk this up some how
Some brave (crazy?) soul bought 144,000 Jan 20 BAC calls for 2 cents apiece yesterday. That's roughly a $300,000 bet that BAC is gonna double in the next 6 months.
Not a trader, but if BAC goes up by say 20% over the next few weeks, wouldn't that also increase the value of the options dramatically? I understand that the time value is diminishing but I would imagine that as the unlikely ($20 by January) becomes a littles less unlikely, these options could potentially skyrock, no?
HAHAHA!
That's the theory, anyway. Theoretically, a 20% increase in the underlying could make those options double (not much of a stretch to go from 2 cents to a nickel). That's what the buyer is banking on, obviously. Either that, or it's some kind of hedge.
lmao @ bac being a steal. Have any of you actually studied or even glanced through their balance sheet. It would take years if not decades to take offload all the BS on their BS.
Sure it is a great steal if you are looking to trade the stock over a short period of time (months) or looking to invest over a very vert long period of time (i.e decades)
It would take years to actually figure out a number that is +- 10bn of what BAC's accurate BV.
Happy pants +1. I just got off work and am beginning to celebrate the weekend.
bump because I made a short position when this idiot posted at made about 5% return
why you getting out of it, the trade has not changed, leaving $$$ on the table.
called taking profits
I'm not trading equities til at least August 4th or 5th... Call me a pussy, but I think there's just too much volatility for my tastes..
yea or us debt downgrade then all hell should break lose like during lehman brothers
Anyone come in with me on the MS long puts when financials were going nuts?
Just went long JNPR front month calls today.
Fade the panic, both ways.
I pray that works out for you I'm really scared atm I think Americas fate will be decided in upcoming days.
Thanks, that makes two of us -- on the prayers and the fate of the US.
Bailed a little to early on the MS trade -- looking to trim some off short covering on the JNPR. 97% of my money is in cash right now.
Added to my DMD short position a few days ago.
Thug life.
BAC is definitely not a steal right now. It's actually one of the more dangerous stocks to get into. Inexperienced investors see it so low, going between 9 and 10 and almost forget that's a full 10% swing.
Not to add, almost all financials are pretty risky right now (esp with a possible downgrade coming up).
I have no doubt that BAC will be higher more mid to longterm, but why put your $$ in there now and let it waste away earning no return? Wait until the debt crises is over, wait till BAC has gotten most of the fleas out, and wait until it shoots up a little bit till you waste time & $$ jumping in right now.
debt vote failed tonight....there is no way they are going to have a bill by August 2nd
Some one sticky this
It may be now... BAC closed on Friday at $8.17, its lowest since April 2009
BAC might be the next Bear Stearns:
http://www.nakedcapitalism.com/2011/08/bank-of-america-death-watch.html
Down ~20% in the last two days. Net capital is quickly becoming a problem.
indeed BAC is a steal, but not for the bidder
welp, guess im eating my words
Boom goes the dynamite. You should thank us though and buy some soc gen with the fresh bills we saved you.
I made quite a bit of money fucking around with C back in 2008 and 2009. The market parts a fool with his money. You have to be a fool to be truely long on financial stocks at the moment.
"CFC is a got damn steal right now ma boyz"
-Kenny Boy
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