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BAC-WT - Bank of America Warrants


ValueBuff

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Mike Mayo upgraded BofA from sell o Outperform !!!!! LOL

 

BAC stock has underperformed and the timing to switch into the bullish camp seems rather good - what is there to laugh about?

 

it's funny because Mayo WAS a BAC perma bear and he's a joke.

 

I guess he thinks an activist can come and create value for BAC at this valuation; that's why he is a bull now. He is loosing hid edge though; last call he didn't ask his usual "what is your target financial metrics and when you'll get there?" question :-) he definitely sounds like a joke

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Are banks stocks predicting an ugly and prolonged deflation ahead

This is the only scenario to justify such a reaction

 

Alright who on this board bought more leaps?  You inadvertently caused a plague of schlonging upon us all.

 

Also, go buy more leaps. They aren't cheep enough for me yet.

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So, BAC is ~7% of my portfolio (was more....) and, I think, to commit new capital my hurtle rate on this is doubling in 3ish years. I mean, that has to be possible on the high end, at least. So, a 1% return on assets would be about $1.80 EPS and a 12x multiple would be $21.60, or ~67% above the price now.

 

I don't know how I feel about this back of the envelope math -- I'm trying to create an upper bound on the prospective valuation to get a sense of whether the stock is stupid cheep. Based on this, I don't think its quite there yet -- maybe at $11 it becomes too cheep to ignore?

 

Thoughts?

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Are banks stocks predicting an ugly and prolonged deflation ahead

This is the only scenario to justify such a reaction

 

Alright who on this board bought more leaps?  You inadvertently caused a plague of schlonging upon us all.

 

Also, go buy more leaps. They aren't cheep enough for me yet.

 

I believe so.  Not yet predicting though... merely discounting (with an increasing probability) at this point.

 

Were it to be predicting, then the general market would be much lower already.

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Looking at Jan 18 BAC put option, bid at $0.79. If you sell put, you are pocketing the premium, and BAC has to go down 30% for you to not make money. Given the upcoming rate increase, is the buyer of the contract really that pessimistic?

 

Should have loaded up at $0.79.  It's now bid at $2.37.

 

200% gain!

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Looking at Jan 18 BAC put option, bid at $0.79. If you sell put, you are pocketing the premium, and BAC has to go down 30% for you to not make money. Given the upcoming rate increase, is the buyer of the contract really that pessimistic?

 

Should have loaded up at $0.79.  It's now bid at $2.37.

 

200% gain!

Maybe the buyer of those contract is right ;)

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today's stock price was a gift.  i'm not even pencilling in $21 in 3 years, $20 is good enough for me.

 

Hoping for better gift tomorrow. 

 

if the severely adverse scenario in ccar 2015 happen and the fed's model is correct, minimum tangible common equity will be around $100 billion or $9 per share.  Can't wait for bac to get to $9. 

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Can't help wondering who's selling below $13.

 

Hedge fund/mutual fund redemption? 

 

SWF selling holdings?

 

While the market has indeed fallen across the board, BAC however appears to be dumped at much greater speed.

 

I can't even say I hear much about the bear case.

 

 

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At least the WSJ is in agreement with us....

Bank of America: Why Its Stock Is Worth More Than This

BofA’s shares are getting pummeled, but things aren’t as bad as they seem

http://www.wsj.com/articles/bank-of-america-why-its-stock-is-worth-more-than-this-1454520249

hah...

 

can you post article don't have subscription

 

1) go to news.google.com 

2) put the article title or something close to it in the search box.

3) click on the result from WSJ.com that matches the article you want.

4) Read the full article for free because WSJ lets traffic through if it is "referred by" google news

 

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At least the WSJ is in agreement with us....

Bank of America: Why Its Stock Is Worth More Than This

BofA’s shares are getting pummeled, but things aren’t as bad as they seem

http://www.wsj.com/articles/bank-of-america-why-its-stock-is-worth-more-than-this-1454520249

hah...

 

can you post article don't have subscription

 

1) go to news.google.com 

2) put the article title or something close to it in the search box.

3) click on the result from WSJ.com that matches the article you want.

4) Read the full article for free because WSJ lets traffic through if it is "referred by" google news

 

They (WSJ) are testing not allowing this to work for the time being.

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At least the WSJ is in agreement with us....

Bank of America: Why Its Stock Is Worth More Than This

BofA’s shares are getting pummeled, but things aren’t as bad as they seem

http://www.wsj.com/articles/bank-of-america-why-its-stock-is-worth-more-than-this-1454520249

hah...

 

can you post article don't have subscription

 

1) go to news.google.com 

2) put the article title or something close to it in the search box.

3) click on the result from WSJ.com that matches the article you want.

4) Read the full article for free because WSJ lets traffic through if it is "referred by" google news

 

They (WSJ) are testing not allowing this to work for the time being.

 

Go incognito/private through your browser. It should still work.

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At least the WSJ is in agreement with us....

Bank of America: Why Its Stock Is Worth More Than This

BofA’s shares are getting pummeled, but things aren’t as bad as they seem

http://www.wsj.com/articles/bank-of-america-why-its-stock-is-worth-more-than-this-1454520249

hah...

 

can you post article don't have subscription

 

1) go to news.google.com 

2) put the article title or something close to it in the search box.

3) click on the result from WSJ.com that matches the article you want.

4) Read the full article for free because WSJ lets traffic through if it is "referred by" google news

 

They (WSJ) are testing not allowing this to work for the time being.

 

I'm surprised it took them this long. What would be the reason for allowing it?

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At least the WSJ is in agreement with us....

Bank of America: Why Its Stock Is Worth More Than This

BofA’s shares are getting pummeled, but things aren’t as bad as they seem

http://www.wsj.com/articles/bank-of-america-why-its-stock-is-worth-more-than-this-1454520249

hah...

 

can you post article don't have subscription

 

1) go to news.google.com 

2) put the article title or something close to it in the search box.

3) click on the result from WSJ.com that matches the article you want.

4) Read the full article for free because WSJ lets traffic through if it is "referred by" google news

 

They (WSJ) are testing not allowing this to work for the time being.

 

I'm surprised it took them this long. What would be the reason for allowing it?

It still works for me.  They leave it open

1) to preserve their market share and page views among readers that have no intention of becoming paying customers.

2) Maybe google gives them better search ranking if they leave it open. This results in more site traffic, and eventually more paying customers.

 

 

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