Big Debt and Big Returns Could Be Spurring This Rally [View article]
While I am not to sure I agree with you, I am more sure that your comment will provoke lots of disagreement. BAC could have the rosy future you depict, or it could end up being diluted away. That CEO you cite might not be there before this crisis ends.
On Mar 30 04:25 AM balabanovj wrote:
> Debt/equity ratios are but one measure. In general, Alan is right, > but in the case for example of Bank of America, we're all pretty > sure how the story is going to end. It might take a few years, but > BAC is going to extinguish it's TARP debt in the next 12-18 months > as per it's CEO, and from there, at least if we are in the midst > of an economic recovery, it's clear sailing and BAC will once again > be an enormously profitable company- even moreso this time with it's > ML investment arm which will add revenue through brokerage and IB, > and Country Wide to take advantage of the real estate recovery. My > prediction is that CW will eventially be spun off after BAC has milked > the recovery out of them. BAC though, will return relatively quickly > to EPS levels of at least $5-6/shr and a $50 share price. > > JBB
Dow Member Year to Date Performance [View article]
Big Debt and Big Returns Could Be Spurring This Rally [View article]
Big Debt and Big Returns Could Be Spurring This Rally [View article]
On Mar 30 04:25 AM balabanovj wrote:
> Debt/equity ratios are but one measure. In general, Alan is right,
> but in the case for example of Bank of America, we're all pretty
> sure how the story is going to end. It might take a few years, but
> BAC is going to extinguish it's TARP debt in the next 12-18 months
> as per it's CEO, and from there, at least if we are in the midst
> of an economic recovery, it's clear sailing and BAC will once again
> be an enormously profitable company- even moreso this time with it's
> ML investment arm which will add revenue through brokerage and IB,
> and Country Wide to take advantage of the real estate recovery. My
> prediction is that CW will eventially be spun off after BAC has milked
> the recovery out of them. BAC though, will return relatively quickly
> to EPS levels of at least $5-6/shr and a $50 share price.
>
> JBB