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Yield Hunter

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  • Daily Call Sheet Focus: Bank of America [View article]
    Let's say options expire on December 17. Do they need to be exercised the day before (like ex-div dates)? Or does the holder have until the market closes on December 17?
    Nov 28 12:02 AM | Likes Like |Link to Comment
  • 2 Reasons Not To Buy Bank Of America Stock [View article]
    Tim, thanks. Good answer, I appreciate your input.
    Oct 23 12:22 AM | Likes Like |Link to Comment
  • 2 Reasons Not To Buy Bank Of America Stock [View article]
    Tim, good point.

    Depending on the bounces in the market, it is not out of line to say an investor may be able to pick on BAC for less than $6, and if it can go up a dollar over 10 years, that's approximately 15% return, while still staying under the $7.14 strike price. I agree, that over 10 years that is weak, but it also looks as if the company will try to continue paying and raising its dividend. If it can do that successfully, BAC can return 2-4% annualized over 10 years, without dilution, until this whole mess is far enough behind the financial sector. Let me know what your thoughts are on these assumptions.
    Oct 16 08:08 PM | Likes Like |Link to Comment
  • 2 Reasons Not To Buy Bank Of America Stock [View article]
    I don't mean to interrupt, but two thoughts:

    1) Berkshire has a 10 year window to exercise the warrants, so if the stock stays low, he may not exercise at all, thus not diluting.

    2) Even if many of the dotcom bubble stocks never regained their full market value after 2002, many of them have gained since their lows, which is the current situation any investor in BAC should view themselves in. BAC is no longer trading at $50, and if you bought back then, you're likely never to see that money again. But to buy in now, similar to 2002-3, an investor would likely see at least decent returns from here on out.

    That's not to say that it still may be a very long horizon to make it worth it, but I'm with Andrew on this one, and if I had money to invest, I would put it in BAC within the next few months (depending on how much lower I think the market can still go)
    Oct 11 10:50 AM | Likes Like |Link to Comment
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