BAC Bank of America It's all mine now!

[Small Biz Owner]

As BAC stumbles downwards, where in every ones opinion do you think is a good entry point on the stock? I have just put in a buy order at $5.00.

[rovo]

BAC posted a loss of $0.90 per share for Q2 as was predicted by the analysts. Going forward, the expectations are to be profitable for the remainder of 2011 and for the entire year of 2012. I don't follow BAC, so I don't know why they lost so much in Q2. Could they have written down some assets to a market value? If so, then it just reflects reality and is not a bad thing.

$5.00 seems a little low when looking at the charts as it is currently at $9.25 which just happens to be a 52 week low. So they are in unchartered territory as far as the charts and maybe $5.00 is doable.

[Small Biz Owner]

BAC bottomed at about $3.90 in Feb of 2009. Maybe it is doable, maybe not. BAC headwinds seem to be mighty robust this time around again.

[Small Biz Owner]

BAC at $8.17 only $3.17 to go.

[yclept]

There is another banking crisis coming. I don't think BAC will survive it in any way that will preserve value for existing shareholders. I don't mess with banks -- to me banks are like pumping the outhouse, a job I'll gladly leave to others. If I did do anything with banks, I would take BAC as a short down to zero, but I'd still be afraid of splashing some of it on my clothes.

[Small Biz Owner]

$6.51 close. Only $1.51 to go.

[yclept]

Um, err, are you at all sure it's not $6.51 to go?

Ratios & Statistics - Trailing Twelve Months
P/E 0.40
PEG NA
Price/Revenue 0.30
Price/Cash Flow NA
Price/Book (MRQ) NA
ROA 3.12%
ROE NA%
Current Ratio (MRQ) NA
Total Debt/Equity (MRQ) 0.00

We know the d/e cannot be zero, as that is not the nature of the beast. The two price ratios that do show would be very attractive unless they were the result of a fiscal death rattle. BAC's depositors will be made whole, bondholders have the next claim on liquidation funds and will partially be reimbursed. Shareholders have the last claim on assets, and will get what is left after the bondholders are partially paid off, which is, of course, nothing.

[livinincali]

BAC is a zero. Company won't disappear but shareholder equity will eventually. My prediction is Bank of America will actually belong to the American government soon enough. I figure it works out like GM but best case it might be an AIG which is trading sub 1 if you account for the split adjustments.

[Small Biz Owner]

Only $2.25 to go. Or $7.25 from zero. I don't thnk they will let it fail, look what happened after they let Lehman fail.

[yclept]

Not letting a company disappear is not the same as preserving value for any of the existing shareholders. A company is not the same thing as the stock of that company.

[Small Biz Owner]

yclept no doubt about that. Delta has gone bankrupt more than once. But in this economic climate the Big Banks seem to be the chosen few, so to speak. Probably to instill public confidence.

BAC $7.36 $2.36 to go. And this is a good day for them

[Small Biz Owner]

7.47 and holding, 5.00 maybe not meant to be?

[yclept]

Don't forget other financial institutions that were folded into operations of others -- two that come to mind are Countrywide and Washington Mutual. The original shareholders of those companies got nothing.

BAC would probably have been okay had they not bought Countrywide and then had Merrill Lynch shoved down their throat by Paulson and Bernanke.

I hope when BAC goes belly-up they shove it down the throat of Goldman Sucks.

[IPAfan]

Too bearish on BAC. I think it's probably a buy at this point, but I'm also steering clear. I'm more interested in the (not quite as) cheap, but well run financial institutions. JPM, GS, and WFC are pretty good candidates IMO.

[Value Buy]

Treading water above $6
Shorts have no worries about a white knight coming in.

When does the Government take it over and stockholders lose everything?

[Deleted]

Did anyone get in on BAC? if so, are you getting out now?

[Value Buy]

Buffet still has some sway over his remarks......

[yclept]

A.P. Giannini (May 6, 1870 – June 3, 1949) just rolled over in his grave and passed gas:

jubakpicks.com/2011/08/31/is-bank-of-america-about-to-be-finally-dragged-under-by-its-countrywide-acquisition/?utm_source=Jubak+Alert&utm_medium=email&utm_campaign=c816c186f8-RSS_EMAIL_CAMPAIGN

[Small Biz Owner]

Still holding my buy point at $5.00. BAC Came mighty close though, just over $6.00 for the low. One more round of bad news might do it.

[formerexpat]

I'd sell now. Don't let Buffett's preferred convertable play confuse you. The man sold all his common shares in February and has put himself in line in front of you and most creditors to get his money back while enjoying a 6% coupon and the ability to convert at any time in the next 10 years at nearly 11% less than the current price of BAC.

The euphoria is new on this stock because of the Buffett play. I'd sell now before the realization of future dilution sets in.

That and BAC's very toxic BS.

[IPAfan]

I think BAC is most likely going to provide an excellent return going forward, but with a much greater than average chance of a permanent loss. This can make for an excellent investment, but the risk is too great for an overweight position.

One thing to consider...BAC is essentially an option, and currently trading WAY below book value. Even if the stock is diluted by buffett the company is WAY below book value, and the dilution will serve to strengthen the balance sheet with the exercise of warrants around the current price. Just because you're getting a smaller piece of a bigger pie doesn't mean the stock is a sell. The question is the value of each slice. If BAC is truly in danger of failing to meet capital requirements then the sale of common stock even at the current price would improve the prospects for the common position as a whole. OTOH, only if the company presents an excellent investment does dilution become a problem as it weighs on the upside potential. If the company can return 1% on its assets it can earn $2 per share pre dilution. With the amount of shares Buffett could purchase you're still looking at a low single digit multiple to possible normalized earnings.

Since BAC is essentially an option in itself at this price. I think the way to play this is with LEAPS or warrants. If BAC survives and successfully turns around, it's likely to rise over 100% IMO. (With a corresponding possible 100% loss if countrywide gobbles up the good businesses). I've looked at BAC, and I would only allocate a small amount of capital here because of the potential for decimation if the company needs to reorganize. Bsnk stocks are often at risk of shareholders getting clobbered due to the highly leveraged nature of the business...BAC has bad assets which it's writing down which removes the clarity.

I'd think about buying some OTM call options for Dec 13. One possibility would be the $10 call option for $1.15 or the 12.50/15 call spread for .33. If BAC ended over $15 for the call spread you'd make $2.17 for every .33 invested in the call spread. These are obviously highly leveraged gambles, but for a position like BAC that's already highly leveraged, why not add some more, and then make your allocation small enough that it doesn't hurt if your position gets wiped out.

[Small Biz Owner]

BAC is essentially an option, and currently trading WAY below book value

I noticed that also. So I bid next to nothing and wait.

[Small Biz Owner]

And still waiting. Laying off 30,000 employees, and still it stays above $7.00.

[Small Biz Owner]

Back to $6.16 a share only $1.16 to go.

[Small Biz Owner]

$5.53 ;D Only 53 cents to go.

[Value Buy]

Looking at the European markets this morning, and as bad as they are, I am thinking you might want to re-think your entry point.
More like $3.75
Today the entire stock market is going to be brutal. Opening should be down, but the question is how far, and where do we close?
American banks shold take another big hit today.

[Driftr]

And we still have MTM suspended. Wonder what rabbit Ben is going to pull out of his hat in front of CONgress today.

[ModE98]

Hmmmm..... "...rabbit Ben......" Sounds like should get ready to do the Bunny Hop this afternoon. ;D

[Small Biz Owner]

CONgress I like that one ;D All bought and paid for already by your Fortune 500 corporations.

[burger]

I wouldn't touch any of these bank stocks at this point. Most of the big ones are in the process of pissing off their customers by adding all these fees to debit and/or checking accounts. I can guarantee you that if Wells Fargo implements this as well, I'll be headed to my closest small town bank/credit union to give them all my business.

The big banks don't really give me anything that I can't get at the small bank. I've just always had Wells and never had a reason to switch. This would give me plenty of a reason.