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A bullish call on BofA (BAC) from Barron's, which thinks the stock could rise more than 40% in...

A bullish call on BofA (BAC) from Barron's, which thinks the stock could rise more than 40% in the next two years as the bank's credit portfolio improves and as CEO Brian Moynihan works to improve earnings. Potential investors may want to see what Monday brings before jumping in.
Comments (47)
  • Morocco Bama
    , contributor
    Comments (129) | Send Message
     
    Great call. I bet even BAC don't know what's on their books. Your buying a bag of worms.
    13 Mar 2011, 02:47 PM Reply Like
  • Jeff Nielson
    , contributor
    Comments (2464) | Send Message
     
    Some of these shills have absolutely no shame. With BoA about to "flush" half of its mortgages down its own toilet, only a fool would buy into this fraud-factory...

     

    "Bank of America creates toilet for "bad mortgages""

     

    www.bullionbullscanada...
    13 Mar 2011, 03:22 PM Reply Like
  • bbro
    , contributor
    Comments (9319) | Send Message
     
    Has anybody read their 10q's over the last 5 years??? any comments
    other than the usual angry comments....
    13 Mar 2011, 03:58 PM Reply Like
  • bbro
    , contributor
    Comments (9319) | Send Message
     
    No shame and yet somehow Mr. Neilson sells his link....
    13 Mar 2011, 04:05 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4009) | Send Message
     
    Can't hurt that BAC is TBTF. I'm eagerly awaiting tomorrow's news to see if it will have any affect on the stock long term.
    13 Mar 2011, 06:23 PM Reply Like
  • Hillbilly Stock Star
    , contributor
    Comments (728) | Send Message
     
    To many horror stories on internet, avoiding.
    13 Mar 2011, 03:31 PM Reply Like
  • Boxed Merlot
    , contributor
    Comments (1583) | Send Message
     
    To wit:
    ZH: Operation LeakS Bank Of America Fraud Disclosure To Hit At Midnight Eastern, 5 AM GMT

     

    Could be interesting. Funny how this SA article has come out at this time, imo.
    13 Mar 2011, 08:46 PM Reply Like
  • Boxed Merlot
    , contributor
    Comments (1583) | Send Message
     
    Operation LeakS" Releases Initial BofA Emails Indicating Premeditated Intent To Deceive Government And Auditors

     

    Submitted by Tyler Durden on 03/13/2011 23:31 -0500

     

    ...Tells me Boa is knowingly hiding Foreclosure information from Feds…

     

    Seems to me the jury is out. Probably nothing to worry about though, everybody was asleep while the evidence was being presented.

     

    Personally, I patiently await my turn at the guillotine manned by Mr. Obama, Mr. Geitner and their employer's (the B.I.S.) emissary Mr. Bernakne as he awaits my inability to service the note I voluntarily signed believing all parties involved were functioning in good faith before 78.56% of its' value evaporated along with my future employment opportunities tied to the construction industry.

     

    See y'all on the other side.

     

    14 Mar 2011, 01:59 AM Reply Like
  • Ken Hasner
    , contributor
    Comments (427) | Send Message
     
    BAC is one of the worst run companies in America. They send me a mountain of crap (checks, come-ons, etc) every week, at least twice or 3 times what I get from JPM. They haven't stopped doing business like in the past....they simply proceed like it was still 2005 all over again. At least JPM is investing (heavily) in emerging markets with our 0% taxpayer loans, BAC simply wants to hook more Americans on high card rates as their business model for the future.
    13 Mar 2011, 03:43 PM Reply Like
  • Bouchart
    , contributor
    Comments (755) | Send Message
     
    I was a customer of BoA some years back. Didn't like them. Out of the blue they started charging me a ridiculous service charge for an ordinary checking account, something like $10 per month, because I didn't have more than $800 in their "free" checking account at the end of the month.
    13 Mar 2011, 05:29 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    Could you please pass the cheese with that whine!

     

    There is nothing in your posting that does anything to explain why,

     

    "BAC is one of the worst run companies in America"

     

    If you have facts post them if you just want to see your picture and name in print go to the Huffington Post.
    13 Mar 2011, 07:50 PM Reply Like
  • bbro
    , contributor
    Comments (9319) | Send Message
     
    Read this....

     

    seekingalpha.com/artic...
    13 Mar 2011, 07:51 PM Reply Like
  • Ken Hasner
    , contributor
    Comments (427) | Send Message
     
    I'd much rather see your name in print. BAC's growth strategy relies principally on American consumption as I stated. We are broke....without investing heavily in emerging markets they are making a poor management decision, with the availability of low cost capital they are allocating it IMHO in the wrong places, hence my commemt about how they are a poorly run company. Just look at their strategy at acquiring CountryWide...another great decision.
    13 Mar 2011, 08:50 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    I respect your opinion but I prefer to invest more heavily in America, in Americans and in American businesses. For certain there are problems here but this is still the safest place on Earth to live and to do business. BAC is a very large domestic bank. It has an international presence which is dwarfed by its domestic business. Its primary focus is on the US consumer and US businesses. It has been in a whole lot of trouble lately. The press even today is not favorable. I own some BAC through stock that has been in my family since 1947 from a long ago acquired community bank. I follow it closely and did not like the Merrill-Lynch acquisition myself but we will see how it turns out.
    14 Mar 2011, 06:22 AM Reply Like
  • Ken Hasner
    , contributor
    Comments (427) | Send Message
     
    Fair enough....a reasonable online discussion with 2 opposing points of view. I wish you well.
    14 Mar 2011, 08:14 AM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    May your trades treat you well.
    14 Mar 2011, 08:58 AM Reply Like
  • valueinvestor123
    , contributor
    Comments (327) | Send Message
     
    The SEC and FASB allows BAC to mark their investments however they want and you are telling me BAC will only earn $2. I think you underestimate the creativity of those who work at BAC. Sure they would have massive losses if they needed to mark their books to the truth, but they have free reign to mark how they want. I would be SHOCKED if they stopped at just $2 a share.
    13 Mar 2011, 04:08 PM Reply Like
  • bbro
    , contributor
    Comments (9319) | Send Message
     
    "The SEC and FASB allows BAC to mark their investments however they want "

     

    Not true....
    13 Mar 2011, 04:14 PM Reply Like
  • Bouchart
    , contributor
    Comments (755) | Send Message
     
    Then where did all the bad assets go? Did anyone ever figure out how to value those securitized mortgages?
    13 Mar 2011, 05:30 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3314) | Send Message
     
    Bouchart,

     

    Ahh, The Toxic assets. The ones nobody talks about anymore.

     

    (When was the last time you even heard the term on Bubblevision? )

     

    The ones that were supposed to be purchased with TARP money.
    The stuff that was supposed to be the purpose of TARP to begin with.

     

    Those assets have been socialized via the treasury or the Fed and lie on their balance sheets.

     

    In fact in a continuation of the shell game, AIG (Remember them?) offered to bid on some of the junk only last week. Since treasury owns most of AIG, you can bet that there will be a buyer for AIG to unload the shit in the future at a nice profit , free market or not.

     

    The Fed or the treasury has no requirement to file those pesky 10Q forms.

     

    Instead it was deemed more profitable for the banks to just take the TARP money for another shot at the "Wall St Casino"

     

    This time in a carefully orchestrated event so everybody would buy simultaneously, with another QE.. event promised in the future to insure a profitable exit strategy for all those TBTF.

     

    In fact the crisis was so severe, that in the same year TARP was distrubuted,(2009) Wall St enjoyed record compensation in the very same calender year.

     

    Gives new meaning to the phrase "Long Term Investor" I suppose.

     

    Meanwhile stocks like C and BAC still sit about 60% or more off their highs from less that 4 years ago.

     

    It's called weath creation, shareholders need not apply.
    13 Mar 2011, 08:54 PM Reply Like
  • tigersam
    , contributor
    Comments (1711) | Send Message
     
    Barron is always right in their call making.
    13 Mar 2011, 04:35 PM Reply Like
  • valueinvestor123
    , contributor
    Comments (327) | Send Message
     
    bbro: I guess you missed the memo of where we made it so banks no longer have to "mark to market."
    13 Mar 2011, 04:42 PM Reply Like
  • bbro
    , contributor
    Comments (9319) | Send Message
     
    And your interpretation of mark to market is???
    13 Mar 2011, 04:50 PM Reply Like
  • valueinvestor123
    , contributor
    Comments (327) | Send Message
     
    Do you want an accounting lesson from me or a debate on whether mark to market is appropriate to use? My guess is you want the latter and I have very little inclination to engage in a back and forth especially when it is on a topic in which I have no true vested interest because I do not own any bank stocks. If you want to go ahead and believe how a bank markets its assets and liabilities that is fine by me. I just wonder what happens to the banks balance sheets when the cash flow assumptions that they have marked those assets and liabilities to, don't pan out.
    13 Mar 2011, 05:19 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    "I just wonder what happens to the banks balance sheets when the cash flow assumptions that they have marked those assets and liabilities to, don't pan out."

     

    Then they remark the value of the assets to a new and most likely lower value. You should probably as PWC about this since they have to approve the valuations.
    13 Mar 2011, 05:53 PM Reply Like
  • bbro
    , contributor
    Comments (9319) | Send Message
     
    If 2 doctors own a house but the mortgage is more than the value of the house
    and they haven't missed a payment...What is the value of the loan???

     

    P.S. Misinformation on a SEC filing can be a criminal or civil offense
    Misinformation on a blog results in no offense....in fact some people
    take it as gospel because it confirms their pre-ordained belief....
    13 Mar 2011, 05:31 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    Depends, on if they live in a single action state such as California or not. Also, depends on the general financial where with all of the two doctors. They could be dead beats with huge debts. Depends, on what the regulators are feeling like this week. So, in general, it just depends on a whole lot of unknown factors.

     

    What's your answer?
    13 Mar 2011, 05:50 PM Reply Like
  • rooftop
    , contributor
    Comments (140) | Send Message
     
    Two doctors? That's convenient. Why didn't you use an example where there's an unemployed person with delinquent payments?
    13 Mar 2011, 06:28 PM Reply Like
  • bbro
    , contributor
    Comments (9319) | Send Message
     
    180+ delinquent....loans are charged off...
    13 Mar 2011, 07:33 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    What does that mean?

     

    Are you in the hot tub with a class of wine writing responses again?
    13 Mar 2011, 08:28 PM Reply Like
  • bbro
    , contributor
    Comments (9319) | Send Message
     
    More like my fat butt in the shower and a six pack....
    14 Mar 2011, 02:28 AM Reply Like
  • valueinvestor123
    , contributor
    Comments (327) | Send Message
     
    Ok last response and I will only do so because I do not want to spread misinformation. The SEC and FASB have NOT said that BAC or any bank can mark their books to whatever they want. Instead, what has happened, is that the FASB has agreed to continue the suspension of mark to market accounting. Because of that suspension, banks now have a wider latitude to mark their investments to valuations that MAY not pan out in the end. Obviously the word "may" means that the banks may be both understating or overstating what those investments are worth. However, MY guess is that they are not understating what the investment may be worth. Is that better bbro?

     

    As for jail and fines. I don't recall anyone high up at an establishment bank like JPM, GS, BAC, MS etc going to jail and I certainly don't recall established banks ever paying any fines that were truly devastating. That $550 million fine GS paid was equivalent to what maybe 5% of the bonus pool that year. That is not to say, that other less established firms have not been brought down by regulators, but this is a topic for another day.
    13 Mar 2011, 05:52 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4009) | Send Message
     
    And if I'm not mistaken ( I don't want to end up in bbro's blog hell ), the purpose of TARP, ZIRP and POMO is to recapitalize the banks which wouldn't be necessary if their assets were sufficient to cover their liabilities.
    13 Mar 2011, 06:28 PM Reply Like
  • bbro
    , contributor
    Comments (9319) | Send Message
     
    Of all mortgages that exist today 8.8% are delinquent.....4%
    are in foreclosure....for the the banks the delinquency rates are significantly lower....Like you said it depends...that is what loan loss
    reserves are for....
    13 Mar 2011, 07:23 PM Reply Like
  • bbro
    , contributor
    Comments (9319) | Send Message
     
    The problem was the banks had insufficent tangible common equity
    in 2008 (also check out Rule 15s 3-1)...those levels are significantly higher 2years later...plus
    a lot of bad loans have been charged off....As far as ZIRP....that is function
    in large part of loan demand...how many people do you know are
    taking out mortgages,auto loans,commercial loans.??...when loan
    demand picks up ZIRP will quickly go away.
    13 Mar 2011, 07:30 PM Reply Like
  • Ken Hasner
    , contributor
    Comments (427) | Send Message
     
    I'm not sure you are counting the several hundred billion in mortgages that Freddie and Fannie are trying to 'put' back to the banks.....it may be the only way to keep them from finally going under....let's see who blinks first
    13 Mar 2011, 07:31 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    About a decade ago Canary Wharf in London was in huge financial difficulty. The National Bank of Canada, the smallest of the six big Canadian banks had a huge exposure. The process in Canada for dealing with problem loans is, or was, different than the US. NBOC wrote down its balance to zero not knowing the value of the loan. It was devastating to the current years earnings reducing them to $1.0 million, pocket change. In a later year, when the situation was resolved NBOB took in a huge recovery of a portion of its original $600 million write down. That type of write down with a later recovery is not permitted by US regulators reducing loan accounting transparency by regulation.
    13 Mar 2011, 07:34 PM Reply Like
  • MrAndMatt
    , contributor
    Comments (84) | Send Message
     
    Very true, IFRS allows this, but not GAAP.
    14 Mar 2011, 12:06 AM Reply Like
  • bbro
    , contributor
    Comments (9319) | Send Message
     
    Rule 15c 3-1
    13 Mar 2011, 08:08 PM Reply Like
  • gigeze787
    , contributor
    Comments (12) | Send Message
     
    Barron's is just pimping for a criminal enterprise...preemptively released to blunt Wikileaks, et.al. email dump on Monday.

     

    BAC should be prosecuted under RICO (along with GS, C, WFC, JPM, and former AIG and LEH senior officers)...

     

    SA should have a red "***Caveat Emptor***" warning attached to such Wall Street propaganda...
    13 Mar 2011, 09:36 PM Reply Like
  • earlybird
    , contributor
    Comments (24) | Send Message
     
    what timing! Maybe this article will counter act the report Anonymous plans to release on Monday regarding the Bank.

     

    Just a coincidence IM SURE
    13 Mar 2011, 11:16 PM Reply Like
  • MrAndMatt
    , contributor
    Comments (84) | Send Message
     
    I'm looking forward to reading whatever documents they release, should be fairly interesting.
    14 Mar 2011, 12:07 AM Reply Like
  • earlybird
    , contributor
    Comments (24) | Send Message
     
    bankofamericasuck.com/
    14 Mar 2011, 01:41 AM Reply Like
  • cowpieTX
    , contributor
    Comments (29) | Send Message
     
    dud
    14 Mar 2011, 01:55 AM Reply Like
  • Ken Hasner
    , contributor
    Comments (427) | Send Message
     
    The only major bank not to pass the recent stress tests.....I rest my case.......it's like a festering nuke core gone bad on their balance sheet.
    24 Mar 2011, 10:30 AM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    Not that your position is not possible but the truth is, you have no clue why the Fed turned BAC down. Please stop posting as though you know something no one else does unless you want to provide some support for your positions other than you hate this company. A position in which you are not alone.
    24 Mar 2011, 11:34 AM Reply Like
  • 1980XLS
    , contributor
    Comments (3314) | Send Message
     
    7foot,
    I agree in regards about providing specifics.
    But, I would also believe it would be safe to speculate they were not denied rights to raise dividends because things are "Just Great"

     

    Disclosure, no position
    24 Mar 2011, 11:41 AM Reply Like
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