"Settle," was Bruce Berkowitz's emailed message to Bank of America (BAC) CEO Moynihan....

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Ted Bear Comments (419)
 
B of A book value $20 / share.

Come on Bruce.

You show me a legitimate 20/share, and I'll show you a balanced Federal Budget.

B of A would be lucky to achieve zero if they mark their mortgages and derivatives. There is a reason why the stock trades below $10, with such 'great operating earnings.'
26 Nov 2012, 08:59 AM Reply Like

DeepValueLover Comments (5071)
 
Please keep talking down BAC. I need more deeply undervalued shares!!

Thanks.
26 Nov 2012, 11:19 AM Reply Like

Getzeman Comments (34)
 
Today's news about the successful MBI solicitation offer makes Bruce's suggestion more likely.
26 Nov 2012, 09:17 AM Reply Like

CalebT Comments (8)
 
BofA is cleaning its balance sheets more and more each day. It's settling most things out of court to try and make amends for 2007-2008. If Bank of America continues to do this, there's no reason it can't trade much higher in the next year or two.
26 Nov 2012, 09:18 AM Reply Like

MexCom Comments (2796)
 
The balance sheet is undervalued. They are trying to make themselves as small a target as possible for litigation. As long as there is fear they will go under, the litigation claims will be smaller than otherwise to encourage settlement out of court. Recent sales of assets have been above book value. Foreclosed properties on the books are going up in value. The cash set aside for litigation will not all be claimed. I estimate the undervaluation of the assets is somewhere between 30-40%.
26 Nov 2012, 09:50 AM Reply Like

DeepValueLover Comments (5071)
 
Bingo!

And if you want an oddly secret play on once toxic real estate assets becoming MUCH more valuable with each passing quarter then I STRONGLY suggest Citigroup "B" TARP warrants.

(Take a look at the quietly increasing value of the assets in Citi's so-called "bad bank")
26 Nov 2012, 10:51 AM Reply Like

cuznbruce1 Comments (5)
 
Bruce always touted his biggest positions....creates liquidity
26 Nov 2012, 09:54 AM Reply Like