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BAC-WT - Bank of America Warrants


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Of course not.  Frankly, the discussions on this board are way more in depth and valuable, but it's also useful to have a quick summary of the various current lawsuits / issues.

 

I have taken a half-position in BAC LEAPs recently.  Hope it dips a bit before the CCAR result release and I will get into a full position.

 

 

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Anyone know if we will get buyback news on march 7th or do we have to wait for the 14th on that? I'm wondering if the 7th will merely announce the pedestrian news that BAC passed?

Absent any major news, stock should move 10% to tbv upon (or few days before) buyback announcement as the "dumb" money comes in. We saw it last year when the stock moved 25% on merely passing the test without asking for anything.

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Anyone know if we will get buyback news on march 7th or do we have to wait for the 14th on that? I'm wondering if the 7th will merely announce the pedestrian news that BAC passed?

Absent any major news, stock should move 10% to tbv upon (or few days before) buyback announcement as the "dumb" money comes in. We saw it last year when the stock moved 25% on merely passing the test without asking for anything.

 

No, the news starts leaking out early in the media.  We may start to hear stuff as early as the end of this month!  Cheers!

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Curious that Francis Chou dumped a whole pile of BAC-WT-A.  If somebody gets a chance to chat with him at the FFH meeting in April, I'd love to know his rationale for reducing that position.  From my perspective, BAC-WT-A looks like a 30% annual gainer for at least a few more years.

 

 

SJ

 

I mentioned this in the recent Chou 13F thread, but it seems as though he has held onto his warrants in the Chou America funds.

 

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Curious that Francis Chou dumped a whole pile of BAC-WT-A.  If somebody gets a chance to chat with him at the FFH meeting in April, I'd love to know his rationale for reducing that position.  From my perspective, BAC-WT-A looks like a 30% annual gainer for at least a few more years.

 

 

SJ

 

I mentioned this in the recent Chou 13F thread, but it seems as though he has held onto his warrants in the Chou America funds.

 

 

He wont tell you.  I expect it was a matter of something else being more attractive.  Francis is a an asset based manager.  One thing is for sure: he didn't make much money on them. 

 

And who knows... he may have taken a tax loss and rebought.  That is the problem with the 13 f.  Lagged 6 weeks, and a one day snapshot.

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Curious that Francis Chou dumped a whole pile of BAC-WT-A.  If somebody gets a chance to chat with him at the FFH meeting in April, I'd love to know his rationale for reducing that position.  From my perspective, BAC-WT-A looks like a 30% annual gainer for at least a few more years.

 

 

SJ

 

I mentioned this in the recent Chou 13F thread, but it seems as though he has held onto his warrants in the Chou America funds.

 

 

He wont tell you.  I expect it was a matter of something else being more attractive.  Francis is a an asset based manager.  One thing is for sure: he didn't make much money on them. 

 

And who knows... he may have taken a tax loss and rebought.  That is the problem with the 13 f.  Lagged 6 weeks, and a one day snapshot.

 

I've always wondered this about mutual funds and hedge funds -- does the whole tax offset thing work the same for these things?

 

If you are in the US, for example, can you sell in your investment fund to harvest a loss and then buy after the wash sale period is up?

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Curious that Francis Chou dumped a whole pile of BAC-WT-A.  If somebody gets a chance to chat with him at the FFH meeting in April, I'd love to know his rationale for reducing that position.  From my perspective, BAC-WT-A looks like a 30% annual gainer for at least a few more years.

 

 

SJ

 

I mentioned this in the recent Chou 13F thread, but it seems as though he has held onto his warrants in the Chou America funds.

 

 

He wont tell you.  I expect it was a matter of something else being more attractive.  Francis is a an asset based manager.  One thing is for sure: he didn't make much money on them

 

And who knows... he may have taken a tax loss and rebought.  That is the problem with the 13 f.  Lagged 6 weeks, and a one day snapshot.

 

That is kind of the point. Weighting in a fund is based on cost. To illustrate; for a fund of $100 I can put $10 into a stock, which with a share price of $1 means I can buy 10 shares for my fund. If the share tanks to 50 cents then I cannot add to my position. However, what I can do is sell my shares and buy back the position 30 days later, thereby establishing a new cost base, and in this case I can now buy 20 shares.

 

So it if he is selling only in one place and not the other and his cost base is materially higher in the place he is selling then it is a safe bet to assume, that is what is happening. So, selling to buy more.

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Of course not.  Frankly, the discussions on this board are way more in depth and valuable, but it's also useful to have a quick summary of the various current lawsuits / issues.

 

I have taken a half-position in BAC LEAPs recently.  Hope it dips a bit before the CCAR result release and I will get into a full position.

 

I enjoyed it. Tnx.

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From Chou's letter in 2010

 

"Our investing horizon is long-term – eight years or more for these bank warrants. Over that period, we believe the odds are it will work out to be decent investment – more so for the better capitalized banks. We view it as the glass being more than half full rather than being more than half empty.

 

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From Chou's letter in 2010

 

"Our investing horizon is long-term – eight years or more for these bank warrants. Over that period, we believe the odds are it will work out to be decent investment – more so for the better capitalized banks. We view it as the glass being more than half full rather than being more than half empty.

 

Long eight years...wait...

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CEOs pay remained the same - options increased

 

Hey Eric. Did you sell your BAC today?   LOL.  next time give us a heads up first...

 

I'm curious to know if Eric bought any?

I bought more leaps after it hit 11.80.

The fed is still chaired by a dove and he will ultimately get the votes he needs. I think the market overreacted. I have a huge percentage in BAC.

We are roughly two weeks from buyback news. I'd be surprised if price widens from tbv instead of converging with so close to buyback in over 5 years.

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What buyback are you referring to?  Is there a buyback expected?  Is one expiring?

 

The company has mentioned numerous times that it wants to return extra capital to shareholders via buybacks and dividends once it gets permission from its regulators. They are expected to get permission relatively soon.

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