Bank of America Stock

[James5v]

You guys are the big boys buying 10000 shares.

[Enuf]

Actually, I'm counting (hoping) on the dividend staying in place especially if BAC nudges back to mid $30's. So yeah, it's a gamble. I will hold long term if BAC lingers low $30's but will sell (in IRA) if it bounces to $37.20.

[growing_older]

And what if it drops quickly into the twenties or teens?

[Rambler]

bought 700 shares of BAC last week...shoulda got a few more. Trying to build an income stream from munis and divvies. At 8.9% yield, thats not bad...if the principal doesn't erode. I think over time the stock will go back up. The question is: how much time? Had some WB from before, DCAing in at lower prices, but it keeps sinking.

R

[Enuf]

I think others have already mentioned that this might be a dollar cost average buying opportunity. I'd buy more, and in the teens, much more.

[al_bundy]

all these stupid bankers and hedge fund managers not buying BAC. all the money they can make borrowing at 1% in some country and buying BAC just for the dividend

[Enuf]

Doesn't Mr Market climb the wall of "Worry Warts"?
Could there be any action such as a BAC and WB merger in play?

[haha]

Originally Posted by Enuf

Actually, I'm counting (hoping) on the dividend staying in place especially if BAC nudges back to mid $30's. So yeah, it's a gamble. I will hold long term if BAC lingers low $30's but will sell (in IRA) if it bounces to $37.20.

What would you do at $37.10?

This plan tells me that you are looking for $5-7, and risking who knows what in that quest?

Wow!

bought 10,000 shares today at 30.19, so it's bound to go to $15.10. Luckily I almost never lose more than half.

I hope you have a few more $300,000 packs wherever that one came from.

Ha

[Abreutime]

Originally Posted by al_bundy

all these stupid bankers and hedge fund managers not buying BAC. all the money they can make borrowing at 1% in some country and buying BAC just for the dividend

The dividend is likely to be cut. Not guaranteed, but likely. On the bright side, an expectation of a dividend cut is partially priced in, so hopefully it won't drop too much if/when it's cut. Also, even if the dividend is cut in half, the yield will still be solid (it's just over 9% currently).

I don't own any BAC (have some WFC... not much better), but I've been watching it.

[Zathras]

At this point I would sooner buy GE (4.3% yield) as I have far more confidence in their dividend safety.

[Enuf]

Originally Posted by haha

What would you do at $37.10?

This plan tells me that you are looking for $5-7, and risking who knows what in that quest?

Wow!



I hope you have a few more $300,000 packs wherever that one came from.

Ha

Actually, I'm hoping to hold BAC longterm as I suspect any dividend cut upcoming has already been priced in. And if I am correct, the dividend cut should be 30-40%. Still a nice dividend. A cut to 5-6% at todays $28.20 (new 52 week low) would not surprise me at all.

An yeah, a few more packs in the fridge. And all in Index funds.

[VaCollector]

WOW! $27.50 and sinking.....I don't feel so good....

Wish I has some of that $$$ Enuf has in his freezer.....although, I haven't been so lucky so far.....

Opportunity time, YEAH I know....but is it the last opportunity to sell (aka Bear Sterns) or the buying opportunity of my lifetime....

Where's the earlier poster (here or in bank stock post) who predicted an $18-19 bottom....technical analysis geeks - what say you??

Now where did I put that Magic 8 Ball??

[al_bundy]

maybe the people in the know on wall street have advance warning that the countrywide buyout is going to blow up?

[Enuf]

VACollector, I know the feeling. I'm playing with my mad money but darn, even losing the mad money seems maddening.

Looks like most of the banks are taking the same beating but what is behind that. Another major financial in big trouble and not in the news yet?

[al_bundy]

there are rumors that Lehman Brothers is in big trouble and may be insolvent. a hot shot hedge fund manager who has been right a lot of times even has a huge short bet on them.

[haha]

Originally Posted by Enuf

(June 16): I bought 10,000 shares today at 30.19.

(June 19): I'm playing with my mad money but darn, even losing the mad money seems maddening.

Folks, give it up now for the new Big Swinging D. of ER.org.

I guess that is why it is called Mad Money. I know I would be plenty mad if I lost anything like this.

Ha

[Enuf]

Actually have my sell point set at $5/share, so the "mad" part of that $300k is more like $50k. Yeah, it will make me mad but a $50k loss won't effect my portfolio enough to affect my lifestyle.

[haha]

Large U.S. banks' stocks in capitulation mode: Merrill: Financial News - Yahoo! Finance

I think this guy makes a good point. I don't remember many instances where a stock gets significantly diluted and current shareholders don't experience some loss. True, it reduces risk of failure, but you also own less of the company than before.

Often there are other equities almost as depressed as the ones at risk for offerings. These IMO are a better bet.

Ha

[grumpy]

My stock purchases are mostly dividend plays. I sold some appreciated Dominion Resources (D) shares this morning and bought more BAC with the proceeds. I figured that even if BAC is forced to cut their dividend in half, I will still be better off in terms of dividend income. I expect to hold the BAC shares long term.

Grumpy

[al_bundy]

Calculated Risk: S&P Research Downgrades BofA