Bank of america

[Snowx800]

What is everyone think about it. $10.23 reading where they are thinking up to $20. Thoughts

 

[Purron]

I was worried when I saw BAC dipped below $10 earlier this week. Lots of bad stuff happening with them recently. Hope this "too big to fail" bank doesn't go under. Last thing we need right now. I'm sure the regulators are losing sleep over this one.

 

[73ss454]

Snow, I think you need to do more reading. Put more money in an index fund and relax.

We had one member here that was highly invested in BofA and went back to work because of it during the crash.

 

[VaCollector]

oh oh me me me.....

BAC is a BUY BUY BUY!!

Full disclosure ~ I've owned this stock since 2006 and have lost more $$$ than a lot of folks actually have....

BUYER BEWARE as BAC does NOT give a hoot about its stockholders!

IMHO this may be the ONLY big bank with a real shot at going under....with the "wonderful" deals made to acquire Countrywide and Merrill Lynch, everything that I read seems to indicate that all of the investment/mortgage mess may not be behind them....

It also seems that BAC is the whipping boy of choice for the media....add to that the possibility that Wikileaks has something on them that just might fuel the fire ~ I would RUN not walk to any other financial institution if that is the area in which you feel that you must invest.

I forgot to add that when I think that the stock can't go any lower or that the news can't get any worse ~ IT DOES!!

PS ~ thanks for remembering me 73ss ;-)

 

[Purron]

oh oh me me me.....

BAC is a BUY BUY BUY!!

Full disclosure ~ I've owned this stock since 2006 and have lost more $$$ than a lot of folks actually have....

BUYER BEWARE as BAC does NOT give a hoot about its stockholders!

IMHO this may be the ONLY big bank with a real shot at going under....with the "wonderful" deals made to acquire Countrywide and Merrill Lynch, everything that I read seems to indicate that all of the investment/mortgage mess may not be behind them....

It also seems that BAC is the whipping boy of choice for the media....add to that the possibility that Wikileaks has something on them that just might fuel the fire ~ I would RUN not walk to any other financial institution if that is the area in which you feel that you must invest.

I forgot to add that when I think that the stock can't go any lower or that the news can't get any worse ~ IT DOES!!

PS ~ thanks for remembering me 73ss ;-)

I remember you too and your experience with BAC. I also agree this is the only big bank with a real shot of going under. I know you're watching this more closely than most of us and would appreciate your thoughts going forward. This is a worry for sure.

 

[Nords]

What is everyone think about it. $10.23 reading where they are thinking up to $20. Thoughts

As VaCollector advises, you need to scroll through his old BAC posts.

Some stocks are screaming buys, others are blatant shorts.

And some are so dysfunctionally psychotic, with overtones of fraud and felonies, that you just wouldn't want to touch them even with somebody else's 10-foot pole. Not even Brewer can put together a good revenue model of their business. Heck, not even BAC can put together a good revenue model because they're too big to keep track of themselves.

But if you're one of those people who likes to ride rollercoasters 40 times in a row while holding your hands in the air... you'll definitely get a wild trip here.

If you must pick a good dividend stock, though, start with this blogger's posts:
Dividend Growth Investor

 

[wannabe]

To Va Collector

I've read your saga with interest, and believe I have you beat. DH worked for BAC and accumulated 50,000 shares between $16-18 per. When stock hit $50 (yes, I know it went above that once), I urged him to sell half. No, because of cap gains tax. When it slid to $30 I begged sale of half. Again, no due to cap gains. When it hit $15 I groveled, and was turned down due to cap losses. By now it is pointless.

This stock represented 50% of our holdings. We are retired, so not much chance to recoup.

I believe DH has a new,innovative theory -- hold 'n hope.

Perhaps we can be partners in misery!

 

[VaCollector]

I've read your saga with interest, and believe I have you beat. DH worked for BAC and accumulated 50,000 shares between $16-18 per. When stock hit $50 (yes, I know it went above that once), I urged him to sell half. No, because of cap gains tax. When it slid to $30 I begged sale of half. Again, no due to cap gains. When it hit $15 I groveled, and was turned down due to cap losses. By now it is pointless.

This stock represented 50% of our holdings. We are retired, so not much chance to recoup.

I believe DH has a new,innovative theory -- hold 'n hope.

Perhaps we can be partners in misery!

Misery partners we ARE!

I understand his decisions as mine were similar....after all, we were doing
exactly what we were taught....

"what more conservative investment is there than a good bank stock? ....buy and hold....
don't worry, the market will turn around....give 'em a couple of years,
they'll be back stronger than ever.....it can't keep going down...."

all of these were comments from "people who know" about such things....

...and now ....hold 'n hope....I LIKE IT! That could even be a new
political slogan come next fall

Thanks for sharing your misery.....taking ownership of things like that
take some bit of courage ~ especially when sharing with a bunch of
strangers....super knowledgable and friendly (for the most part) strangers...
but strangers none the less...

Thanks again for sharing and WELCOME to the board!!

 

[chinaco]

I know people that have done the same thing.... single stock, a major part of their wealth and fail to diversify... then lose most of it.

It seems that many of these people decide to wait for it to come back... unfortunately, It may not do it in their lifetime or for many years.

 

[travelover]

I know people that have done the same thing.... single stock, a major part of their wealth and fail to diversify... then lose most of it.

It seems that many of these people decide to wait for it to come back... unfortunately, It may not do it in their lifetime or for many years.

When I worked at MegaMotors, I was amazed at how many had their whole 401(K) invested in MegaMotors stock. Pretty clever diversification.....

 

[Col. Klink]

I'm sticking with my Vanguard Wellesley, but if you feel you MUST invest in the banks now then an etf like VFH would be the move to make. As others have indicated in this thread - diversify.

 

[DblDoc]

When I worked at MegaMotors, I was amazed at how many had their whole 401(K) invested in MegaMotors stock. Pretty clever diversification.....

Or in their bonds...

DD

 

[Purron]

This is worrisome:

AIG sues BofA for $10 billion alleging "massive fraud" - Yahoo! Finance=

Right now, BAC's down to $7.39 a drop of over 9%

 

[JBmadera]

It's on its way to $5

 

[BUM]

As far as financials go... I own SKF. Today was a very good day. I'll likely unload soon.

 

[Coolius]

I used to be a customer of BAC, many years ago. But the bank was so terrible in the way it stiffs customers with nickel-and-dime fees, and the arrogance of many ( not all ) of its staff and customer service, that I left after a short and frustrating time.

So am not totally surprised to hear of their being embroiled in Subprime mortgages, robo-signing, CDS, and other nefarious activity.

It will have to be a cold day in Hades for me to buy any shares of BAC - however, I reserve the right to short, and buy to cover if the opportunity presents itself. Should have done so last week......

 

[clifp]

I am not a big fan of BAC either. However, during the last crisis I bought some shares of BAC prefered stock BAC/prL for my 85 year old mom's account. It has coupon of 7.25% and actually is convertible to BAC common and $50/share (he he).

I mean to sell when it reached par in June, but forgot about it.

Today's rally helped push back up to $821 where it has current yield of 8.1%
In the past bond holders and most preferred stock holders have not been hurt by to big to fail banks. Any reason to expect that this time will be different.

Needless to say I certainly have no other investment ideas that would provide my mom with 8% return. I should add it is <1% of her portfolio so not a big deal either way.

 

[Lakewood90712]

I too have been thinking of BAC , as a long shot. If they [-] get another bailout[/-] use superior business skill to rebuild the company , it could be a " Ten Bagger" as Peter Lynch used to say.

 

[nwsteve]

I too have been thinking of BAC , as a long shot. If they [-] get another bailout[/-] use superior business skill to rebuild the company , it could be a " Ten Bagger" as Peter Lynch used to say.

You may get your wish based on this news piece from CNN this morning
Bank of America's back-door TARP - The Term Sheet: Fortune's deals blog Term Sheet
More backdoor subsidy for the folks at BoA. Frankly, I find their business practices so distasteful, I see no reason to fool with them when there are so many other great choices to invest.
Nwsteve

 

[James5v]

I took a shot and bought a little at 7.00 today.

 

[Purron]

Warren Buffett to invest $5 billion in Bank of America - Yahoo! Finance=

Wow. BAC way up on this news.

 

[MichaelB]

Warren Buffett to invest $5 billion in Bank of America - Yahoo! Finance=

Wow. BAC way up on this news.

Well, he does know how to make a deal. Preferred stock @6% div plus warrants to buy 700M shares 7.14.

 

[harley]

When are they going to rename it the Bank of Warren? They can list it on the exchange right next to Government Motors.

 

[MichaelB]

When are they going to rename it the Bank of Warren? They can list it on the exchange right next to Government Motors.

He's not buying BoA, he's just lending them money.

 

[Nords]

Well, he does know how to make a deal. Preferred stock @6% div plus warrants to buy 700M shares 7.14.

Clearly the investors think it's a better deal for BofA than for Buffett. But I liked this quote:
Warren Buffett to invest $5 billion in Bank of America | Reuters

Buffett's Berkshire Hathaway will in many ways make out even better financially than Bank of America did in the deal. Berkshire had a position in the bank that he sold in the fourth quarter of 2010 when the stock had an average price of $12.24.
The warrants to buy 700 million shares of common stock he gets in this deal are priced at just over $7.14 per share, with an unusually long 10-year exercise period.
One long-term Berkshire shareholder said the warrants were the best part of the deal by far.
"He could well make a 100 percent return on his investment in a few years," said James Armstrong, president of Henry H. Armstrong Associates. "It's amazing how much a little hug from Buffett is worth these days."
Bank of America will also sell Berkshire 50,000 shares of cumulative perpetual preferred stock with a 6 percent annual dividend, it said. Bank of America can buy back the investment at any time by paying Buffett a 5 percent premium.

Goldman-Sachs may have repurchased their preferred shares, but they couldn't recall their warrants, either.

I guess BofA shareholders can see where their dividend stream will be going for the next few years...