finetrader Posted February 11, 2016 Share Posted February 11, 2016 Riders On The Storm! https://www.youtube.com/watch?v=DED812HKWyM Link to comment Share on other sites More sharing options...
ERICOPOLY Posted February 11, 2016 Share Posted February 11, 2016 It will be interesting to see this year's severe adverse scenario results with the negative interest rates thrown in. Link to comment Share on other sites More sharing options...
Guest Grey512 Posted February 11, 2016 Share Posted February 11, 2016 The selling by oil-producing governments globally is hitting financials particularly hard: http://www.bloomberg.com/news/articles/2016-02-11/the-crowded-trade-in-bank-stocks-among-oil-rich-sovereign-funds Inverse lollapaloozza.. Link to comment Share on other sites More sharing options...
Marve2013 Posted February 11, 2016 Share Posted February 11, 2016 Hi Rasputin, Quote from: Rasputin on February 10, 2016, 07:53:01 PM yes, would love to see $10 :) I hope pain lasts at least all of 2016. ****** Just out of curiosity, are you hoping the stock would stay down long enough for BAC to do a bigger buyback for this year? I hope for the same, although given the stress test scenarios doubt if they would be requesting that much a bigger buyback amount relative to last year's. It's such a pain to see the stock at these levels and banks - despite their earnings power - not being able to fully deploy them. Link to comment Share on other sites More sharing options...
ERICOPOLY Posted February 11, 2016 Share Posted February 11, 2016 The selling by oil-producing governments globally is hitting financials particularly hard: http://www.bloomberg.com/news/articles/2016-02-11/the-crowded-trade-in-bank-stocks-among-oil-rich-sovereign-funds Inverse lollapaloozza.. I don't buy that explanation because people can sell whatever they hold and trade into the financial stocks. If they wanted to... that is. Link to comment Share on other sites More sharing options...
TwoCitiesCapital Posted February 11, 2016 Share Posted February 11, 2016 The selling by oil-producing governments globally is hitting financials particularly hard: http://www.bloomberg.com/news/articles/2016-02-11/the-crowded-trade-in-bank-stocks-among-oil-rich-sovereign-funds Inverse lollapaloozza.. I don't buy that explanation because people can sell whatever they hold and trade into the financial stocks. If they wanted to... that is. Yea - financials are getting crushed by the flattening yield curve (2s-10s now less than 100 bps) and the potential for massive losses from oil complex defaults/general recession. I don't think the situation is as dire as 2008 was since banks are far better capitalized and use less leverage - but hte problem is that the curve is nowhere near as steep as it was in 2007/2008 so it's going to be hard for banks to earn any NIM in this environment to offset the losses. In late 2008, the 2s-10s was 3x higher than it currently is now. Link to comment Share on other sites More sharing options...
Rasputin Posted February 11, 2016 Share Posted February 11, 2016 Hi Rasputin, Quote from: Rasputin on February 10, 2016, 07:53:01 PM yes, would love to see $10 :) I hope pain lasts at least all of 2016. ****** Just out of curiosity, are you hoping the stock would stay down long enough for BAC to do a bigger buyback for this year? I hope for the same, although given the stress test scenarios doubt if they would be requesting that much a bigger buyback amount relative to last year's. It's such a pain to see the stock at these levels and banks - despite their earnings power - not being able to fully deploy them. Marve, It's mostly for selfish reason. I'm selling the remaining rental properties I have in Phoenix that I bought in 2011. Told my property manager no lease renewal. First sale will be in April and the last one will close in November. I'm hoping I can reinvest those proceeds in BAC. I'm expecting $7-$8 B capital request. Hitting BAC with $20 B more capital losses vs 2015 DFAST (to account for lower PPNR, higher losses in 2016 scenario vs 2015), BAC will still have about $15 B excess capital. Link to comment Share on other sites More sharing options...
vinod1 Posted February 11, 2016 Share Posted February 11, 2016 Wow. The cost of leverage on the warrants now above 21%. Vinod Link to comment Share on other sites More sharing options...
boilermaker75 Posted February 11, 2016 Share Posted February 11, 2016 I just wrote some 11-strike 1/12 expiration puts for $0.15 per share. Edit: I typed the date wrong. The expiration date is 2/12, tomorrow February 12. Link to comment Share on other sites More sharing options...
boilermaker75 Posted February 11, 2016 Share Posted February 11, 2016 Riders On The Storm! https://www.youtube.com/watch?v=DED812HKWyM this is The End, https://www.youtube.com/watch?v=JSUIQgEVDM4 Link to comment Share on other sites More sharing options...
ERICOPOLY Posted February 11, 2016 Share Posted February 11, 2016 I just wrote some 11-strike 1/12 expiration puts for $0.15 per share. Crash positions everyone! Link to comment Share on other sites More sharing options...
boilermaker75 Posted February 11, 2016 Share Posted February 11, 2016 I just wrote some 11-strike 1/12 expiration puts for $0.15 per share. Crash positions everyone! So when I get put to on these, I'll target $10, then $9, then $8, ....... Edit: As I edited in my original post I typed the expiration date incorrectly. It should be 2/12, tomorrow February 12. Link to comment Share on other sites More sharing options...
ERICOPOLY Posted February 11, 2016 Share Posted February 11, 2016 Your talk is only angering the market gods. I will have to sacrifice a chicken but we're down to only two remaining. Link to comment Share on other sites More sharing options...
ERICOPOLY Posted February 11, 2016 Share Posted February 11, 2016 The fallout has been bad enough since Mike Mayo went bullish. Poor guy can't catch a break. I hope you have enough liquidity to push it higher. Link to comment Share on other sites More sharing options...
boilermaker75 Posted February 11, 2016 Share Posted February 11, 2016 Your talk is only angering the market gods. I will have to sacrifice a chicken but we're down to only two remaining. I just sacrificed my last goat. Let's see if that stops the bleeding. Oh, except for the goat. Link to comment Share on other sites More sharing options...
FCharlie Posted February 11, 2016 Share Posted February 11, 2016 It's such a pain to see the stock at these levels and banks - despite their earnings power - not being able to fully deploy them. This is the number one reason I lost interest in BAC. I've seen companies execute enormous buybacks as a percentage of shares outstanding in a very short period of time. I look at the BAC buyback similar to how I would look at taking a vacuum cleaner out onto the beach and trying to materially reduce the quantity of sand on the beach...And every thirty seconds you have to stop and go empty the bag. Oh and guess what, Warren Buffet gets 700 million shares in a few years so all the buyback so far will not even offset his shares. How lovely. Link to comment Share on other sites More sharing options...
Jurgis Posted February 11, 2016 Share Posted February 11, 2016 I just keep buying the common. Not that anyone cares or should follow. Have fun. Link to comment Share on other sites More sharing options...
vinod1 Posted February 11, 2016 Share Posted February 11, 2016 I increased my position significantly today. Over the next 10 years, if they manage to average 0.5% ROA, they should be able to earn $11 per share in total. So returns should not be too bad. Vinod Link to comment Share on other sites More sharing options...
EliG Posted February 11, 2016 Share Posted February 11, 2016 I increased my position significantly today. Common or...? Link to comment Share on other sites More sharing options...
vinod1 Posted February 11, 2016 Share Posted February 11, 2016 I increased my position significantly today. Common or...? Common. Warrants are way too expensive for my taste. Stock needs to be above $19.6 for warrants to give better return than common at expiry. So annualized return in excess of 21% are needed for warrants to outperform common. Vinod Link to comment Share on other sites More sharing options...
plato1976 Posted February 11, 2016 Share Posted February 11, 2016 Does anyone have an estimation if the short term and long term rate spread keeps at today's level forever, what's BAC's earning power? Can they at least $1.5 per share? I increased my position significantly today. Common or...? Common. Warrants are way too expensive for my taste. Stock needs to be above $19.6 for warrants to give better return than common at expiry. So annualized return in excess of 21% are needed for warrants to outperform common. Vinod Link to comment Share on other sites More sharing options...
ERICOPOLY Posted February 11, 2016 Share Posted February 11, 2016 But we're only like 3 cents away from the $10 handle. So tempting to wait just a bit more isn't it? Dang, can't stop watching the stock today. Link to comment Share on other sites More sharing options...
TheAiGuy Posted February 11, 2016 Share Posted February 11, 2016 Jesus, down 8% Link to comment Share on other sites More sharing options...
TheAiGuy Posted February 11, 2016 Share Posted February 11, 2016 I think this song is appropriate: https://www.youtube.com/watch?v=iTKj_Vd5_Bk Link to comment Share on other sites More sharing options...
Rasputin Posted February 11, 2016 Share Posted February 11, 2016 My limit order for $11.00 was hit. Next stop $10.90 :) Link to comment Share on other sites More sharing options...
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