Bank Stocks

BAC compounded the issues facing them by buying BOTH Countrywide and ML.
I wouldn't touch it (or C) until more of this shakes out.
 
Those are the two decisions I'm referring to.


Ken Lewis needs to go. He has zero credibility.
 
i have a countrywide mortgage, when i heard BAC was buying them last year i knew it was a big mistake
 
FUEGO said:
I hope someone gets a laugh out of this. I just put a decent sized chunk of change into FAS at $3.50/sh. FAS is the Direxion 3x leveraged Bull Financial Fund. Complete gambling and hoping here. We'll see if this is just more money down the financial stock drain...
Click to expand...

This has turned out to be more profitable more quickly than I expected. 100% return in 19 days.

I did sell 45% of my stake when I was up 60%, and the remainder is up a touch over 100% now. Pure luck and willingness to gamble are key to making quick cash in the market.

Now the difficult part - know when to hold em, know when to fold em.
 
If you want to gamble some more...

Option 10,000 shares of C...Jan '10 @5 for .60

Cost $6000

Stock trades at 10 by Jan...turn 6k into 30k
 
JohnDoe said:
If you want to gamble some more...

Option 10,000 shares of C...Jan '10 @5 for .60

Cost $6000

Stock trades at 10 by Jan...turn 6k into 30k
Click to expand...

This is starting to get interesting. The real money today was made on the April calls...most were up 300%+. Jan 5's were only up 50%.
 
A little update - I sold the rest of my FAS triple leveraged fund at 8 and change. Right before it shot up to 10 today. Well over 100% profit, and now I can go back to sleeping at night. ;) And my KBE is close to break even. Just another 30% recovery is all I need...
 
Calculated Risk had a story a few days ago how GS changed their accounting and financial reporting time frames. they changed the time frame for the fiscal year. as part of this they are not reporting anything for December 2008, which is why they reported a profit.
 
Suspicions confirmed:

Quote Barry Ritholtz:Goldman’s 2008 fiscal year ended Nov. 30. This year the company is switching to a calendar year. The leaves December as an orphan month, one that will be largely ignored. In Goldman’s news release, and in most of the news reports, the quarter ended March 31 is compared to the quarter last year that ending in February.

The orphan month featured — surprise — lots of writeoffs. The pre-tax loss was $1.3 billion, and the after-tax loss was $780 million.

Would the firm have had a profit if it stuck to its old calendar, and had to include December and exclude March?

The Case of the Missing Month


GS Press Release wrote:Net loss for December is 1.028 billion, or -2.15 / share. Reported quarterly net earnings were 1.659 billion.

Adding the two numbers, GS really netted 631 million. So the surprise good earnings of $3.39/share (consensus $1.64) is only $1.24 for the 4 months ending March 31. To normalize to 3 months, it would be only 1.24x3/4=0.93!

Reported 3.39, good accounting representation 0.93 EPS.
Who is buying those shares being offered? Maybe their symbol should be BS?
 
kcowan said:
Reported 3.39, good accounting representation 0.93 EPS.
Who is buying those shares being offered? Maybe their symbol should be BS?
Click to expand...

BS? Wasn't that Bear Sterns' symbol? :)
 
thx

i read CR and TBP and sometimes forget where i read a story
 
So Maurice, did you cash out and take some profits off the table? I'm still holding on to my C but I've had it for years and I'm holding for the long, long ride. Looks like your play has turned real good for you, for now.
 
My banks stocks are up about 250%, but that's not saying much, they're down about 70% from my peak in 2007.
 
ChrisC said:
So Maurice, did you cash out and take some profits off the table? I'm still holding on to my C but I've had it for years and I'm holding for the long, long ride. Looks like your play has turned real good for you, for now.
Click to expand...


Nope, I'm holding both until the crisis is behind us. Maybe for years if need be.
 
Welllll - given Warren Buffett's track record vs the Norwegian widow - she is thinking of dumping her BAC, C, UBS, JPM and putting it all on red - er ah WFC or maybe some also on US Bancorp for seasoning.

Of course I may hurry up and wait till football season.

heh heh heh - note to self - quit watching so much Yahoo Finance - go outside and garden/ do yard stuff. :rolleyes: :greetings10:.
 
You must log in or register to reply here.

Latest posts

Back
Top Bottom