Mayo gives thumbs down on BofA annual meeting

One day after attending Bank of America's (BAC +1.2%) annual meeting, CLSA's Mike Mayo cuts his FY14 EPS estimate all the way to $0.55 per share from $1 previously, based on the lender having just $2.4B on reserve for what could end up being a far larger MBS settlement with the DOJ.

Other issues: "Poor governance, including missing a compensation committee head, different time frames in financial charts, and a meeting that ended before all questions were taken, not to mention a chairman who seems to us like a figurehead." Mayo notes CEO Moynihan ran the entire meeting while Chairman Chad Holliday only gave a few "mostly nonresponsive answers."

Positives: The U.S. consumer banking arm, the investment bank, and wealth management.

Mayo continues to rate the stock a Sell with $15 price target.

Previously: BofA fields questions on accounting foul-up at annual meeting

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Comments (17)
  • LukkiC
    , contributor
    Comments (107) | Send Message
    THUMBS DOWN ON MIKE MAYO !!!!!!!!!!!!!!!!!!!!!!...
    HE KNOWS NOTHING !!!!!!!!!!!!!!!!!!!!!!...
    8 May 2014, 01:40 PM Reply Like
  • ppk721
    , contributor
    Comments (46) | Send Message
    Long are we Lukki----Dont blame Mayo
    8 May 2014, 01:54 PM Reply Like
  • Dirty Capitalist
    , contributor
    Comments (187) | Send Message
    I still liked it when, at a Chase meeting, Jamie Dimon smacked Mayo down with his, "That's why I am richer than you.", following a bone-headed comment by Mike Mayo.
    8 May 2014, 02:05 PM Reply Like
  • eftvox
    , contributor
    Comments (232) | Send Message
    so he goes to one meeting and determines all that. guy must be reallz smarttz
    8 May 2014, 02:19 PM Reply Like
  • kbrad
    , contributor
    Comments (88) | Send Message
    Never understood why analysts give it a sell rating when their price target is higher than the current trading price. If you see something selling for less than its worth, wouldn't that be a buy?
    8 May 2014, 02:30 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11349) | Send Message
    (BAC) needs to get its act together...PRONTO!
    8 May 2014, 03:01 PM Reply Like
  • Palenque
    , contributor
    Comments (395) | Send Message
    Who is this guy anyway... never heard of him.
    8 May 2014, 04:27 PM Reply Like
    , contributor
    Comments (269) | Send Message
    Mike Mayo has been a top flight bank analyst for over 25 years. His only problem in the past 4 years is that he has been dead flat wrong on over 75% of his predictions regarding the big bank stocks including BAC, JPM and especially C. Few of the top bank executives want to meet with him or confide in him anymore due to his endless contrarian views on bank earnings which have proven consistently off the mark. This barrier to communication is probably why he is often clueless. He does have occasional unique insights but in the case of BAC he has been consistently incorrect for at least the past 3 years.
    8 May 2014, 06:49 PM Reply Like
  • funfundvierzig
    , contributor
    Comments (4901) | Send Message
    Mike Mayo, unlike many obsequious Wall Street analysts coddling the executive elite in the banks they cover, has the conviction and courage to speak forthrightly about critical issues, and to share his thoughts with equity investors. Yes, he fires away with hard questions and makes lacklustre and sleazy CEOs very uncomfortable. Good for him. ...funfun..
    8 May 2014, 09:13 PM Reply Like
    , contributor
    Comments (269) | Send Message
    Yes he succeeds in making them uncomfortable, but so what? In the process he has lost all access as he admits in his 2012 autobiographical book "Exile on Wall Street" and needs to buy stock in each bank just to get an invitation to analyst meetings. He has become little more than a sideshow among serious analysts, working for Credit Agricole; hardly a mainstream player. I now read his comments purely for amusement; but if I want credible advice on where to invest I'll follow the real analysts.
    8 May 2014, 09:43 PM Reply Like
  • invest-longterm
    , contributor
    Comments (19) | Send Message
    Mayo is definitely a pariah as far as the big banks are concerned. He has been consistently negative on the BAC for example, when it was trading at 5 dollars. Like "Read the Papers" says, he has lost access with management at the banks, and is out of touch with what is happening. He has been openly anti Moynihan and anti Dimon. These two may make mistakes, but are still very smart people, with a huge smart staff - its foolish of Mayo to pretend he is smarter, when these folks breathe and live wth the business.


    Nonetheless, it is good to have people like Mayo around, because they keep management's feet on the ground.
    8 May 2014, 11:55 PM Reply Like
    , contributor
    Comments (82) | Send Message
    Mike Mayo has been a Perma Bear on BofA since time began.. Why does he bother at all to attend conference calls for BAC. Another question is why does he work for CLSA ?, the French banking company is an offspring of the bankrupt Paris based Credit Lyonnais.
    France is hardly a paragon for entrepreunership, rather, much more a model for state bureaucracy and all that is wrong with it. I would respect much more MM's opinion if he worked for Goldman.
    9 May 2014, 05:25 AM Reply Like
  • funfundvierzig
    , contributor
    Comments (4901) | Send Message
    Fellow investors, the plethora of ad hominem attacks on Mike Mayo strongly suggests what he has to say makes the protectors and proponents of this fraud-filled Bank of America and its mendacious Management extremely nervous. That's telling. It's an old public relations trick for damage control: launch distracting personal smears to divert attention from the message. Avoid the issues he has cogently raised. …funfun..
    9 May 2014, 06:56 AM Reply Like
  • TBV
    , contributor
    Comments (184) | Send Message
    Mike Mayo = a joke of wall street ... lol.. he has been banned by many of wall street firms for being obnoxious during conf calls. He has been wrong on BAC for long time and he even admitted it while appearing on CNBC. I would not listen to Mike Mayo even if he is the last analyst on earth. CLSA? not even in the top 30.
    9 May 2014, 08:35 AM Reply Like
  • Scoreboard
    , contributor
    Comments (166) | Send Message
    Well funfun... maybe these "attacks" on Mayo "strongly suggest" that Mayo's opinions make BAC management "nervous." Or maybe these attacks "strongly suggest" that Mayo's opinion are generated from something other than "subjective analysis" of the subject matter at hand. Perhaps the comments are "telling" because Mr. Mayo's opinion are no longer relevant to the discussion. "Fellow investors" do your own research and draw your own conclusions. Just as a side comment... using language like "fraud-filled Bank of America and its mendacious Management" ... does not really engender a feeling of objective discourse to me. Again... "fellow investors" make up you own minds... well thought out comment or frustrated venting. You make the choice..
    9 May 2014, 05:15 PM Reply Like
  • funfundvierzig
    , contributor
    Comments (4901) | Send Message
    The historical characterisation of this Bank as a fraud-filled bank is both factual and objective. There is documented fraud-mongering which has been systematically done by this Bank and its mendacious Management.


    Folks, if directing your employees to falsify mortgage documents or forge or fake such documents knowingly in order to foreclose on the mortgagor isn't FRAUD, civil fraud, consumer fraud, or common law fraud (or even criminal law), we don't know what is!


    An ingrained culture of CHEAT-to-COMPETE ultimately destroys, does not build shareholder value. Ask the former shareholders of the old Wilmington Trust Company in the dwarf state of Delaware. ...funfun..
    11 May 2014, 06:00 PM Reply Like
  • funfundvierzig
    , contributor
    Comments (4901) | Send Message
    Investors, if you GOOGLE, "Bank of America Commits Fraud", 229,000 results instantaneously appear.


    The fraud in this bank has been so extensive and so flagrant, it appears fraud was a polestar business strategy of its ethically crippled Management and Derelict Directors for years. No way can the fraud infesting this bank in a myriad of forms and acts be disguised with PR tricks and cosmetics.


    Frankly and personally, when we invest in the shares of banks, we look for integrity as well as competence in the leadership. …funfun..
    11 May 2014, 07:04 PM Reply Like
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