More on bank capital return plans: JPMorgan (JPM) an increase in the dividend to $0.38 from...

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bill d Comments (1696)
 
So what was all that crap about these great dividend increases last week??? Yeah - they love all of you. Look up sucker in the dictionary and you may see a picture of yourself. Take a good look at the exec packages and their continued compensation increases..
14 Mar, 05:22 PM Reply Like

benitus Comments (785)
 
bill....I never believe (although I was hoping) that those stingy and crappy execs would increase their dividend payout because, as you pointed out, they take care of themselves before taking care of us. I wonder what Josh (Arnold) has to say about this. Say something, Josh, if you're tuning in. Anyway, buybacks should push prices up, so we can still make some profit from trading them. Buy some more quickly now and dump them when the price shoots up. That's what I did, as I expect to see at least $1.50 within a week, if not earlier.
14 Mar, 06:49 PM Reply Like

only11toes Comments (7)
 
Please read a little closer:: .... " share repurchases of $5B and the redemption of $5.5B in preferred stock"
Do you understand what this means to shareholder, this is much better than a token dividend increase. Patient holders will be rewarded. If you feel you were suckered, I hope you sold before market close today. BIG HINT: look @ after hour trading frenzy, over 18 million shares traded so far and BAC high of $12.75.
FREE ADVICE: just sit back and enjoy the ride and you will be a happy camper. This is EXACTLY what the street was looking for. Hope you held on, Moynihan just killed a lot of shorts.
15 Mar, 05:35 AM Reply Like

benitus Comments (785)
 
only...you're exactly right. Shorts will certainly go crazy if they don't bail, as there's no turning back now. In fact, it's the shorts that are keeping BAC from going higher and faster. Well, looks like there're still lots of short action out there and nothing spectacular will happen until the shorts bail and convert to long. Being patient is now the name of the game. Good luck!!
15 Mar, 03:28 PM Reply Like

bill d Comments (1696)
 
I am happy to see it go up because i have a couple of JAN 14 $10 puts I've been waiting to buy back - $86 today so I'm up about $700. Prob do it Monday. Figure it's a dead cat bounce. Think I'll just take the money and run.
16 Mar, 02:51 AM Reply Like

benitus Comments (785)
 
bill...you should probably sit this one out, as there's definitely more room to grow, unless you want out of BAC for good. My money is on sticking around. Have a great weekend.
16 Mar, 11:16 AM Reply Like

bill d Comments (1696)
 
@Benitus
Not sure I understand about "sitting out".- the most I can make any more is $86. I SOLD the puts originally. As the stock goes up the value of the puts goes down. If I don't buy them back and the stock stays above $10 until JAN 2014 I'll only net $86 more. As the stock goes down they increase in value and if it falls below $10 between now & JAN 2014 I will get called out and have to buy 200 shares at $10. Right now I will net about $700 if I buy them back at $86 (2 @$43). I have no desire to own the stock. And of course not too many folks would exercise their put options and make me buy their stock at $10 today. The folks that BOUGHT the puts are eating it big time.right now. Remember SELLING puts is bullish - you want the stock to go up. Buying them is betting the stock will go down. So far I am having a great weekend - thanks. And if you are long BAC you are too. Only difference is as it goes up you continue to increase your profit - I'm locked in. Even if the stock goes to $100 I only will make $86 more as long as it stays ABOVE $10 by JAN 2014.. You naturally will make a bundle. Of course I would certainly buy as much as I could get at $10 today LOL. Hope this clears it up.
16 Mar, 06:13 PM Reply Like

benitus Comments (785)
 
sorry, bill....I misread your earlier comments. Seems like you've done your homework and if you can make $700 as opposed to $86, then of course, you should get out now. Since I'm long on the stocks (not options), I will certainly sit it out and buy more on the dips, for trading purposes and not for going long, as there will be some degree of volatility for some time, seeing that the shorts are still going strong and keeping the price from soaring for now. Good luck for this week. If the market has caught its breath, then it will continue climbing but if conditions prompt further profit-taking, then we might see further consolidation, before the indices turn around again.
18 Mar, 12:31 AM Reply Like

bill d Comments (1696)
 
Hi B.,
Thought perhaps that's what happened - thanks for reminding me - when I just read your comment I went and closed out the puts!
I used to do a lot of swing or day trading I guess it's now called and did very well but although I'm sure many will disagree I've done very well selling puts (sometimes only holding a few days) & a few covered calls - sometimes in a moment of weakness or stupidity I will





buy calls and normally lose - like recently with MSFT. A notable exception was early last year with BAC but even then I sold too them too early. Personally I think BAC will continue to slowly "terrace" up and I should probably sell some more puts. I only sell puts when I am willing/want to own the stock in the event I get exercised - like recently with NLY - I'm now already ahead considering the dividends. Guess I'm afraid to press my luck - don't wanna jinx all you BAC longs LOL. I think your strategy sounds perfect.

Good luck,

Bill
18 Mar, 01:32 PM Reply Like

benitus Comments (785)
 
bill, congratulations on your wise move. Always feel good to make some money. I used to be a day-trader (and I'm still fighting the temptation to day-trade everyday) when I was paying $7 per trade, until I realised that those buggers were ripping me off, as I pay almost $15,000 in one year. Now, I pay only half-cent per share with another firm and making more trades. Never regret any trade you make but learn from it if you've made a mistake. As day-traders, we trade by volume, so there's no such thing as selling too early, as long as you can make some money everyday. Again, we win some and we do lose some. What I do now is to use several trading accounts and divide my capital three ways, one for long-term, another for short-term, and the third for trading, which I use to buy and sell (not within the same day, unless for quick turn-around, as with GMCR today, having a $2 spread) volatile stocks that goes up and down everyday, like C, JPM, VLO, GMCR, etc. I got into GMCR at $20 last year and has been doing well, particularly as there are lots of shorts, which keeps the stock moving actively (I hate dead stocks). Another volatile but unreliable stock would be CALL, as it's near its low now, but daily volume is not much. I stumbled across it accidentally when it was $11 late last month and saw it going up everyday until it turned down after crossing $15 and got out with a good profit. Good luck.
19 Mar, 05:45 PM Reply Like

bill d Comments (1696)
 
Hi B.,
Kinda like to think I know what I'm doing (usually) but compared to you I am a babe in the woods LOL. And a little (good) luck never hurts either. I wish you good luck but not really sure you need it ;).
Bill
20 Mar, 12:43 PM Reply Like

benitus Comments (785)
 
Aw, shucks, bill. You're too modest. Come on, you're doing good and that makes you better than many people. It's also wise to seek another opinion if you're unsure. I'll be sure to seek your opinion if I'm stuck in any situation. Have a great weekend and give yourself a treat. My mother always said, "we work hard to eat well", so you deserve to feel good whenever you make a score. God bless always.
21 Mar, 05:17 PM Reply Like

MrWittyOne Comments (15)
 
I'm hoping these preferred are those belonging to Buffet. He's getting one hell of a return.
14 Mar, 05:28 PM Reply Like

dwdallam Comments (964)
 
Buffet has already almost doubled his money in 6 months.
15 Mar, 05:29 AM Reply Like

only11toes Comments (7)
 
BH GETS a 5% premium on preferred stock repurchased by BAC
15 Mar, 05:32 AM Reply Like

benitus Comments (785)
 
Buffet came in when the stock was $8 but he had a sweet deal, so he's going to hold out for some time. I think he'll wait for at least $20 if not longer. I bet he's been picking up more when it went below $8.
15 Mar, 03:31 PM Reply Like

benitus Comments (785)
 
Mr....yes, the preferreds are very likely belonging to the old goat, unless there are more out there that nobody knows anything about, which I doubt. For Buffet, it's like parking his excess funds and getting 8% annual returns, which is one heck of a deal, but for BAC, there was no choice but to make the deal (as proposed by Buffet) because there wasn't any other way to get those much-needed funds to turn it around, which is why BAC needs to get rid of the preferred shares asap.
16 Mar, 11:20 AM Reply Like

benitus Comments (785)
 
yes, dwdailam.....but don't forget the damn warrants that he still has, which allows him to make further killing on BAC, which he will probably sit on them, until his butt hurts.
16 Mar, 11:22 AM Reply Like

JamesChessing21 Comments (19)
 

a share buyback of 10 billion wow i.e a 8 pct yield dividend buy buy buy buy buy
14 Mar, 06:27 PM Reply Like

ComputerBlue Comments (216)
 
This is better than a 5 cent divi increase.
14 Mar, 06:40 PM Reply Like

benitus Comments (785)
 
Everything depends on how aggressive are the buybacks. They may take their time and buy on the dips, so it's up to us to get the ball rolling. I'm already in for some more, so if you snooze, you lose.
14 Mar, 06:45 PM Reply Like

MatchlessGlory Comments (7)
 
hmm, no dividend for BAC
15 Mar, 05:42 AM Reply Like

wil3714 Comments (331)
 
these buybacks are like 2-3days worth of volume I want that divvy dammit
15 Mar, 05:44 AM Reply Like

MexCom Comments (2796)
 
With 10.82 bil shares outstanding (according to what's on Yahoo finance) @ 12.50/sh the $5 bil buyback comes to 3.7% of the shares outstanding. But you have to also consider all the warrants if exercised as to the future benefit of increased value per share. The stock should now be priced at $12.56.
15 Mar, 06:29 AM Reply Like

only11toes Comments (7)
 
over 20M shares traded AH, with $12.75 high. shorts didn't anticipate the BB's and got hit very hard. smart money will cover today as they won't leave their position open over the weekend.
today will be very interesting, just look what happened to JPM and GS. hats off to moynihan and the board
15 Mar, 08:26 AM Reply Like

benitus Comments (785)
 
only....BAC's shorts are diehards...they'll keep shorting as the price goes up, which will keep the price depressed. That's why we haven't cleared $13 yet. Until they bail and convert their positions, we must remain patient and pick up on the dips if we can.
15 Mar, 03:33 PM Reply Like

mbajajsr1 Comment (1)
 
The CEO of BAC deserves more credit than he gets.
Jamie Dimon of JPM should learn from Brian Moynihan!
15 Mar, 01:14 PM Reply Like