Seeking Alpha
  • Ocean Man
    Citi's K Horowitz says BAC is a buy because an imminent large equity offering is already priced in. Problem is, that's impossible. Equity
    1/8/12
    Reply (6)
    • Ocean Man: offerings are priced at a discount to current share price. See Unicredit for a recent example - dropped 37% on its "no surprise" offering.
      1/8/12
    • TonyNed: This will be interesting when it happens. Fed can't let BAC drop below the magical $5 mark.
      1/8/12
    • BTD70: I wonder if this (BAC) is one to stick an open order to buy around $5.50. And just let it sit.
      1/8/12
    • TonyNed: I would wait until after the offering. Don't know how much dilution is coming so can't comment on the price. Simple math should give target
      1/8/12
    • BTD70: I just meant if there is truly support at $5, that would be a good spot to enter. I don't understand some of the terms above....
      1/8/12
    • BTD70: ..ie "equity offering", so I would need to check that out first.
      1/8/12