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BAC-WT - Bank of America Warrants


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Does anyone have a good overview of who owns BAC A warrants? I remember reading somewhere that Berkowitz owns a solid chunk of AIG warrants but I was wondering if BAC warrants are in similarly firm hands?

 

 

 

Paulson owns 30.7 m

CI Investments owns 10.6m

Highfields Capital Mgmt - 9.9m

Fairholme 9.8 m

Firefly Value Parners - 6.7 m

Ig Investment Mgmt - 4.5m

Chou Associates - 4.3m

...

Chou America Mgmt - another 0.659  m

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Does anyone have a good overview of who owns BAC A warrants? I remember reading somewhere that Berkowitz owns a solid chunk of AIG warrants but I was wondering if BAC warrants are in similarly firm hands?

 

 

 

Paulson owns 30.7 m

CI Investments owns 10.6m

Highfields Capital Mgmt - 9.9m

Fairholme 9.8 m

Firefly Value Parners - 6.7 m

Ig Investment Mgmt - 4.5m

Chou Associates - 4.3m

...

Chou America Mgmt - another 0.659  m

 

Paulson was probably selling today!  ;D  You should also ask Ericopoly how many he owns, because it might not be that much less than Francis!  Cheers!

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I honestly think the $bac warrants are a life-changing investment.

 

I invested half of my family's liquid net worth in them (a couple hundred thousand warrants). Literally stuffed them in every IRA, brokerage, and trust account I could get my hands on.

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I would guess that members on this board probably own 5-7m BAC warrants.  I would bet that there is a fair amount of equity owned too.  I'm going to write a letter to Brian Moynihan and tell him about the little cult following here!  Cheers!

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I would guess that members on this board probably own 5-7m BAC warrants.  I would bet that there is a fair amount of equity owned too.  I'm going to write a letter to Brian Moynihan and tell him about the little cult following here!  Cheers!

 

I was buying more today.

 

I'm sure he needs no advice from us, but tell him to stay the course and keep up the good work!  Thanks Parsad!

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I am sure Moynihan would just be thrilled to know a group of deep value investors had loaded up on his stock..... sarcasm intended.  ;)

 

I wasn't going to buy anymore but did pick up 40 x 10 2015s  today and 1 k common.

 

BAc is running a close second to FFh in my total portfolio now, followed by AIG.

 

edited for dumb mistakes

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I would guess that members on this board probably own 5-7m BAC warrants.  I would bet that there is a fair amount of equity owned too.  I'm going to write a letter to Brian Moynihan and tell him about the little cult following here!  Cheers!

 

I was buying more today.

 

I'm sure he needs no advice from us, but tell him to stay the course and keep up the good work!  Thanks Parsad!

 

Picked up a few 2015 Jan 10 leap today.

I'd like to buy more, but are close to running out of ammunition -- and i'm not ready to sell my BRK for tax reasons.

 

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what are your avg cost bases nkp007 and eric if you don't mind me asking?

 

my is low $3s

 

Probably close to mid-$3s, but I haven't calculated.  Up until a couple of weeks ago I had a relatively small amount.  I then decided to sell out of the $3 strike 2014 calls (which had moved up at a much faster % pace than the common) and load up on the warrants which seemed to either have paced or lagged the common.  The theory being that I'd have greater upside long term while perhaps having less downside volatility over the near term.

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I would guess that members on this board probably own 5-7m BAC warrants.  I would bet that there is a fair amount of equity owned too.  I'm going to write a letter to Brian Moynihan and tell him about the little cult following here!  Cheers!

 

I was buying more today.

 

I'm sure he needs no advice from us, but tell him to stay the course and keep up the good work!  Thanks Parsad!

 

Picked up a few 2015 Jan 10 leap today.

I'd like to buy more, but are close to running out of ammunition -- and i'm not ready to sell my BRK for tax reasons.

 

I bought some more common today as well. But my figures are nowhere as high as some of you guys.

But it;s a start.

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Ericopoly, you re the man. That s awesome.

 

You'll be out of the game with $50m by 2015!

 

Will be pulling for you.

 

I'll need nearly $30 per common share for that, so I'm thinking that's a little early. 

 

I'll be 45 in Jan 2019.  Another 45 yrs at 25% and I'll be a trillionaire! 

 

Regarding that... pretty unlikely.

 

1/2 of this is going to be in a Roth IRA.  Before I'd get to the trillion Congress would probably act to limit the size of RothIRAs.  So I'd hate to be the one who spoils it for everyone else.

 

 

 

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I apologize if this question was asked earlier regarding bac-wta warrants.

 

Can anyone tell in scenario of bank of america divesting or spinoff Merrill lynch few years down the road, what could be potential effects on pricing of warrants?

 

Thanks and regards.

 

If it was ever divested, the cash would end up in BAC's account.  If it was spun off, you could just exercise the warrant and receive your portion of Merrill.  You don't lose.  Cheers!

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Guest rimm_never_sleeps

I apologize if this question was asked earlier regarding bac-wta warrants.

 

Can anyone tell in scenario of bank of america divesting or spinoff Merrill lynch few years down the road, what could be potential effects on pricing of warrants?

 

Thanks and regards.

 

I believe you would get warrants in newco.

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Secondly - what's the board's view on the comparative attractiveness - i.e. weigh BAC/AIG warrants roughly equally or favour one over the other for new positions?

 

I view BAC more favorably.

 

Reason:

AIG relies more on external factors to boost it's ROE -- interest rates and insurance rates.  Both can be low for a very long time.

 

2/3 of BAC's upside is dependent on their own actions -- cost cutting and working through legacy nonperforming things.  Only 1/3 of the upside is dependent on the interest rate curve normalizing.

 

Thus, I think BAC management is in greater control of the catalyst that will take the stock back to 10% ROE (or book value really), and AIG is not in control of it's catalyst for a similar ROE.

 

I would like others who are more knowledgeable about AIG to comment.

 

No love for Citi warrants... :(

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I apologize if this question was asked earlier regarding bac-wta warrants.

 

Can anyone tell in scenario of bank of america divesting or spinoff Merrill lynch few years down the road, what could be potential effects on pricing of warrants?

 

Thanks and regards.

 

If it was ever divested, the cash would end up in BAC's account.  If it was spun off, you could just exercise the warrant and receive your portion of Merrill.  You don't lose.  Cheers!

 

The exercise price would be reduce and the number of share per warrant would be ajusted too..

 

Here's the information:

 

In the case of cash dividends or other distributions. If we fix a record date for making a distribution to all holders of our common stock of securities, evidences of indebtedness, assets, cash, rights or warrants (excluding ordinary cash dividends (as defined below), dividends of our common stock and other dividends or distributions referred to in the preceding bullet point), the exercise price in effect prior to such record date will be reduced immediately thereafter to the price determined by multiplying the exercise price in effect immediately prior to the reduction by the quotient of (x) the market price (as defined below) of our common stock on the last trading day preceding the first date on which our common stock trades regular way on the principal national securities exchange on which our common stock is listed or admitted to trading without the right to receive such distribution, minus the amount of cash and/or the fair market value of the securities, evidences of indebtedness, assets, rights or warrants to be so distributed in respect of one share of our common stock (such amount and/or fair market value, the “per share fair market value”) divided by (y) such market price on the date specified in clause (x). Any such adjustment will be made successively whenever such a record date is fixed. The number of warrant shares will be increased to the number obtained by multiplying the number of warrant shares issuable upon exercise of a warrant immediately prior to such adjustment by the quotient of (a) the exercise price in effect immediately prior to the distribution giving rise to this adjustment divided by (b) the new exercise price as determined in accordance with the immediately preceding sentence. In the case of adjustment for a cash dividend that is, or is coincident with, a regular quarterly cash dividend, the per share fair market value would be reduced only by the per share amount of the portion of the cash dividend that would constitute an ordinary cash dividend. If, after the declaration of any such record date, the related distribution is not made, the exercise price and the number of warrant shares then in effect will be readjusted, effective as of the date when our board of directors determines not to make such distribution, to the exercise price and the number of warrant shares that would then be in effect if such record date had not been fixed.

 

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Own some BAC purchased at 5.12 and 6.95.  Picked up my first BAC A warrants today at 3.88.  The board's discussion and many hours with the Qs and Ks have given me some comfort to increase my investment.  Still not at the point to invest half our liquid assets though.  That takes some real conviction.

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http://www.americanbanker.com/issues/177_212/bofa-scores-service-award-for-branch-experience-1054062-1.html

 

 

Bank of America Corp. (BAC) received an XCelent Service Award for its branch experience and post-account opening service in a report published Thursday by Celent.

 

Staff at the international financial research and consulting firm opened accounts at B of A, BB&T, Chase, Citibank, Fifth Third, HSBC, PNC, Regions, SunTrust, TD Bank, US Bank and Wells Fargo to conduct its research.

 

Celent said in an announcement that B of A was able to offer the broadest array of solutions on the spot, including offering the most thorough needs assessments, demonstrating ATMs and having an investment specialist on staff. Among the talking points for B of A branch staff were: mortgages, including duration, balance and rate; credit cards including international fee waivers and rewards; investment accounts and porting some of a savings account into B of A Merrill investment vehicles; and savings accounts and CDs.

 

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