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BAC Passes Stress Test According to WSJ!


Parsad

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Al,

It cracked $10 18 minutes into trading.  You were soooo close.

 

maybe you guys should get into short term trading!

(j/k)

 

Oh, if only.  I was looking at my records.  I first held the warrants at the beginning of September 2010, 1.5 years ago.  That means I was probably looking at it even earlier.  Same with WFC warrants, some of which I still hold from the first purchase.  I started buying call options on BAC a year ago. 

 

LessthanIV - I too wonder what became of bsilly.  I met him a few times in Toronto. 

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Bought more common and 2014 5's today. I got lucky in that I sold out my position in december for tax purposes and bought the warrants at 2 and have added more warrants,common and options since then. Now comes the tricky part. The back of my truck is getting full. The tricky part now is to ride all the way ???  .  This and the recent move in MFC have done wonders to the account. If SD joins the fray it will be the perfect t storm. Must remember the dark days of sep and oct? Where is Greece by the way?

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Al,

It cracked $10 18 minutes into trading.  You were soooo close.

 

maybe you guys should get into short term trading!

(j/k)

 

Bsilly did join here, but the last time he was actually logged in was back in March 2010.  Not sure if he reads as a guest still.  Does anyone know if he still runs his fund?  The interaction between him and Hempton was great back in the day on the old board.  Cheers!

 

Oh, if only.  I was looking at my records.  I first held the warrants at the beginning of September 2010, 1.5 years ago.  That means I was probably looking at it even earlier.  Same with WFC warrants, some of which I still hold from the first purchase.  I started buying call options on BAC a year ago. 

 

LessthanIV - I too wonder what became of bsilly.  I met him a few times in Toronto.

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has anyone added to position?

 

or is this strictly a hold?

 

it seems that folks last year were estimating earnings power of at least $2

 

s at $10 still has a good margin of safety,no? (not as good as at $5)

 

I have been thinking about adding with a max price of 10. I think if I had no existing position I would be buying, however between common/warrants/options its my largest position. So I am sitting back hoping for a little pull back to add some common.

 

If it helps think in terms of what you feel the IV vs what Mr Market is selling it for. Don't worry about what it traded for last week or last month.

 

 

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my two purchases were at 5.56 and 8 (roughly equal)--doubt I will add any unless it gets under 8 again.

 

Type              Avg. Basis      % of total BAC position based on todays value

W.A                2.53              43.14

W.B                0.67              29.73

BAC                6.22              18.12

2014 12        0.51              7.31

2013 17.50    0.06              1.7

 

The 2013 17.50 was basically a way to get some leverage if this thing *really* takes off (40 bagger if BAC @ 20 by end of year), but I assumed that money was gone when I laid it out. If I add anything at this point I think it will be the common under $10.

 

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The BAC shorts are really getting desperate now!! :)

 

http://blogs.wsj.com/deals/2012/03/19/bank-of-america-denies-market-rumors-of-secondary-offering/?mod=yahoo_hs

 

Bank of America has denied it has any plans to issue shares, contrasting a market rumor that sent shares sliding after a rally for most of the day.

 

“Contrary to market rumors, Bank of America has no intention of issuing additional equity in a secondary offering,” a spokesman said in an emailed statement to media members.

 

Those shorts laughing @ Christmas were angry by St. Patrick's Day!

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The devious side of me wonders if this is somebody trying to buy up what they can under $10.

 

Anyway, I drastically reduced my exposure today.  I'm hoping volatility premiums on LEAPs come down (which they probably won't).

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The devious side of me wonders if this is somebody trying to buy up what they can under $10.

 

Anyway, I drastically reduced my exposure today.  I'm hoping volatility premiums on LEAPs come down (which they probably won't).

 

They also may be testing the durability of the rally.  First they will dump out tons of negative media spin (we're in that phase now), and if the stock holds up then they buy it and put out some rosy forecast articles.

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  • 3 weeks later...

I added some back today. TBV by Xmas this year, right?!

 

You got it!  Because they will hit Basel III numbers by the end of the 3rd quarter.  You can't discount them below tangible book at that point. 

 

Biggest litigation settlement is out of the way, and now they tackle the smaller ones.  Book value or better by mid-2014.  Cheers!

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Among lawsuits, Moynihan needs to settle the MBIA case ASAP. The more this keeps going, the more dirt will be uncovered possibly opening a pandora box for other to sue them. The amount of money involved here is too small relative to BAC to keep going at this and the risk too great. 15 out of 18 banks have already settled the matter.

 

http://www.reuters.com/article/2012/04/09/mbia-restructuring-idUSL2E8F4C3V20120409?feedType=RSS&feedName=rbssFinancialServicesAndRealEstateNews&rpc=43

 

The remaining banks quote a study from Lehman in their prosecution saying that they were insolvent at the time of the split and that this was hidden from regulators. The irony is that they would not have been insolvent if the banks in question had not fed them with fraudulent mortgages to insure in the first place.

 

For disclosure, I own both BAC and MBIA with BAC being a bigger position. However, I firmly believe that I would benefit both ways by them closing this unhealthy proceeding.

 

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