Bank of America Thread (BAC)

[usc90grad]

Anyone else watching and/or buying BAC lately? It's almost ready to fall below $3 again. I'm thinking about buying more.

[khosk]

I tried it once and made a nice little profit but my stomach was in knots for two days.

[usc90grad]

I tried it once and made a nice little profit but my stomach was in knots for two days.

LOL....yeah same here. I've traded it twice in the last month and did good, but it was stressful at times.

[ertman420]

I bought in at $4 and again at $3.30 (I think)... and yeah, I'm considering buying more.

I just made a nice little profit on Marvell (MRVL). They make semiconductors, and just recently came out with a computer that is about the size of a cell phone charger that just plugs into the wall, and you hook in a monitor cable, usb cables, etc. It's really small and uses very little energy, and can be used from a central server, cutting down on logistical and energy reqirements for an office significantly. Anyways, they announced their earnings on the 5th, and they were 5 times the prediction, so I made out on that one.

I also have about 5,000 shares of Sirius (SIRI) that I bought at just under $.13. I really think they will turn it around with a little more help from DirectTV... they have a great product that no one else has. I hope they go back up to abotu $3 someday, I will make a fortune!

What else are you guys looking at? Those three make up my entire portfolio atm...

[khosk]

I read about the little computer from Marvel and am planning to buy one and try and run one of my small websites off of it.

[TStone]

BAC is a solid long hold. I expect it to be easily over $10 within the next 12 to 18 months so I am buying it up like crazy right now. BAC's only real problem is the series of witch hunts it has been the target of. Two out of its three major lines of business are still profitable. I expect a rough Q1 out of its investment division that may or may not drag down its retail and credit servicing divisions. This may drag the price point to below $3 in early April, but that depends largely on stock fluctuation based on investor confidence driven by the housing market, jobless rates, and nationalization rumors.

[usc90grad]

I also have about 5,000 shares of Sirius (SIRI) that I bought at just under $.13. I really think they will turn it around with a little more help from DirectTV... they have a great product that no one else has. I hope they go back up to abotu $3 someday, I will make a fortune!

I own this dog too and the outlook isn't good. They are looking at doing a reverse split, which never turns out good for stockholders. I heard a 20 for 1 split was coming in the next 1-3 months.

[usc90grad]

BAC is a solid long hold. I expect it to be easily over $10 within the next 12 to 18 months so I am buying it up like crazy right now. BAC's only real problem is the series of witch hunts it has been the target of. Two out of its three major lines of business are still profitable. I expect a rough Q1 out of its investment division that may or may not drag down its retail and credit servicing divisions. This may drag the price point to below $3 in early April, but that depends largely on stock fluctuation based on investor confidence driven by the housing market, jobless rates, and nationalization rumors.

I think Ken Lewis will either "retire" or be fired very soon. After that, the stock will run. I think the problems with Citi....with many thinking the gov't is going to step in and nationalize them...is really keeping BAC's price down.

[SNEEZ]

I also have about 5,000 shares of Sirius (SIRI) that I bought at just under $.13. I really think they will turn it around with a little more help from DirectTV... they have a great product that no one else has. I hope they go back up to abotu $3 someday, I will make a fortune


Sirius used to be at like $75 per share around 2000 and I sold all 500 shares I had! :lol:
IU bought them at like $5 per share with money I had saved up and BOOOM...best decision I had ever made to sell at $64. my dad held onto his until 2003...he actually lost a butt load.
I just spent the last of that money last year...lol

http://charts.edgar-online.com/ext/charts.dll?2-4-e-0-0-20101198530102008-03NA000000SIRI&fs-100-SF:1|2|5|3-BG=ffffff-BG1=ffffff-BG2=ffffff-FF:A18=E2E8F1|A33=E2E8F1-ht=250-wd=400-FT:0=6-HO:SW|SE|NW|NE-AP:9=2|10=2-FB:1=ffffff-FL:2=990033-FF:2=990033-FL:3=009900-FF:3=009900-FL:1=0072bc-FF:1=0072bc-FL:18=0072bc-FF:18=0072bc-FL:5=0E1388-FF:5=0E1388-AT:9=1-FI:

[TStone]

I think Ken Lewis will either "retire" or be fired very soon. After that, the stock will run. I think the problems with Citi....with many thinking the gov't is going to step in and nationalize them...is really keeping BAC's price down.

I actually have a lot of confidence in Lewis and think it would be bad for him to leave BAC. Ken's decisions over the past five years to buy Fleet Bank, LaSalle Bank, MBNA and US Trust are all paying great dividends. It's my opinion that the CountryWide and Merrill deals will also pay HUGE dividends once the economy turns even if only in terms of operational efficiency. Accounts held will be a net benefit even if they cause issues in the short term.

My main criticism is that he hasn't been a more vocal & visible leader and has allowed the mainstream media to spin facts to push consumer confidence in the company down. His primary job is to keep BAC in a positive light and on that front he has faltered.

[thekob]

Up 1.4 today I think...not a bad percentage on something that was trading at $3/ps. Kudos to whoever got in there before it went up. I wish I had gotten in there prior to today.

[JaxcockFL]

From a consumer point of view, BAC is terrible. We just fought with them over their mistake with our mortgage. On every turn, they lied. They said that it was late. It was not. THey said the payment we returned by the sending bank. It was not. They said the letters we received closing a credit account was due to other marks against my credit. We produced my credit report, which has no lates.

I would consider this a one time thing, but they screwed up the mortgage when we first got it. I believe that it is part of their system.

We are pulling everything we have out of there. I was with them when they were C&S back in the 80's.

[The Dude]

I've never had a problem with them...automatic debit of my account and I've had really good customer service

[acejrock]

I jumped in on the mid to high 3 price and its done well for me so far... fingers crossed

[usc90grad]

People are day trading this stock like mad. It will continue to go up, but look out for drops as people unload it.

[acejrock]

People are day trading this stock like mad. It will continue to go up, but look out for drops as people unload it.

Well I definitely am not shorting any stocks. I'm too young for that. I just think that over the next several years it will out perform most stocks. And it just seemed like a price I could afford to play.

[TStone]

From a consumer point of view, BAC is terrible. We just fought with them over their mistake with our mortgage. On every turn, they lied. They said that it was late. It was not. THey said the payment we returned by the sending bank. It was not. They said the letters we received closing a credit account was due to other marks against my credit. We produced my credit report, which has no lates.

I would consider this a one time thing, but they screwed up the mortgage when we first got it. I believe that it is part of their system.

We are pulling everything we have out of there. I was with them when they were C&S back in the 80's.

The mortgage dept at BAC is completely changing because of the Countrywide acquisition. When did you get your mortgage?

[TStone]

BAC is at 7.85 in after market trading. Can you say ka-ching?

[usc90grad]

^ Yeah riding this stock like a coed!

:woo:

[TStone]

Khosk, you still predicting nationalization?

[khosk]

I'll answer whether BAC's common equity holders can survive after the stress tests that are being done. The problem is whether BAC can survive a run during a worsening economy without government assistance. Also it's key to know how bad the economy is going to get, no one does. Things started looking up this quarter for the wheels and now the wheels look like they may be coming off again.

[reddot8481]

How so?? Because of the unemployment numbers??

[TStone]

I'll answer whether BAC's common equity holders can survive after the stress tests that are being done. The problem is whether BAC can survive a run during a worsening economy without government assistance. Also it's key to know how bad the economy is going to get, no one does. Things started looking up this quarter for the wheels and now the wheels look like they may be coming off again.

How about now?

;)

[khosk]

How about now?

;)

Well, things didn't really go very well for existing BAC shareholders did they? They had their shares diluted just as if the government had pumped money into them. Instead of the government doing it, private investors did. But either way, there are new owners that pumped money in at a much lower rate than what existing common shareholders did and hurt the earnings potential of existing shareholders. Forty is a long way off and with all of the new shares, it will be a very long time before it gets there. People who bought at 3, which I was one did well but the long time existing shareholders aren't getting a great deal.

Shares are up but will they stay up?

[TStone]

Nah, the PE ratio is still one of the best in the financial sector. BAC could afford to sell some of their stock and will more than make up for it by the end of this year.

[khosk]

The P/E is 13, the banking sector is at 5. BAC is valued a lot higher than most other banks right now. The highest P/E BAC has had in 5 years is 19, meaning a share price of 16 or 17 now values BAC stock at the highest it has been in 5 years. That is a pretty serious dilution of shares as well as earnings just not doing what they should and we are still in a bad recession.

[The Yancey]

I am one of those long time BAC holders. What is killing me now isn't the reduced value. It is the reduced dividend. I think that changes in the next 3 years though. After TARP repayment I anticipate a balanced strategy of dividend increases and stock buybacks. That would appease both the income and capital gains investors.

[TStone]

I am one of those long time BAC holders. What is killing me now isn't the reduced value. It is the reduced dividend. I think that changes in the next 3 years though. After TARP repayment I anticipate a balanced strategy of dividend increases and stock buybacks. That would appease both the income and capital gains investors.

BAC is suffering from little more than consumer backlash driven largely by an unfair portrayal of BAC's financial situation by the media during the first part of this year. The medias insistence on reporting Bank of America in a way that put its financial situation on par with that of Citi combined with unsubstantiated fears or nationalization created an unfounded stigma against BAC. I took advantage of it because I saw through the BS. The numbers I care about have remained very favorable for BAC throughout this fiasco and continue to look strong. Once the noise clears BAC will, in my opinion, land on top of the pile.

Of course Khosk is a naysayer so I'm sure he'll tell you how I'm wrong even though I've been nothing but right for the last six months. ;)

[khosk]

Of course Khosk is a naysayer so I'm sure he'll tell you how I'm wrong even though I've been nothing but right for the last six months. ;)

But I was partially right and you were partially wrong, I just got who the new owners would be wrong and you didn't think there would be new owners. I said the government would take a stake instead it was new private investors. I'm not a naysayer, I am just looking at valuations based on current P/E and future P/E and BAC is high. BAC's current valuation is close to a decade high based on P/E with stills lots of bad assets on it's books and a recession that will negatively impact BAC for years to come meaning earnings that won't be great or even negative.

BAC isn't going anywhere but things are happening that is negatively affecting the value of the common stock.

[TStone]

But I was partially right and you were partially wrong, I just got who the new owners would be wrong and you didn't think there would be new owners. I said the government would take a stake instead it was new private investors. I'm not a naysayer, I am just looking at valuations based on current P/E and future P/E and BAC is high. BAC's current valuation is close to a decade high based on P/E with stills lots of bad assets on it's books and a recession that will negatively impact BAC for years to come meaning earnings that won't be great or even negative.

BAC isn't going anywhere but things are happening that is negatively affecting the value of the common stock.

There is a SIGNIFICANT difference between those two things.