Seeking Alpha

W.C. Varones » Comments » BAC

  • BofA CEO Lewis the Next to Fall?  [View article]
    "As the CEO, he has made some incredible acquisitions which have added enormous shareholder value to the company:

    MBNA (2005) $35 billion in cash and stock
    Fleet Boston Financial (2004) $47 billion in stock
    US Trust (2006) $3.3 billion, all cash"


    As the stock was in the 40's and 50's in 2004-2006, and is now in the low-20's, I fail to see how these acquisitions added enormous shareholder value.
    Jul 01 16:21 pm |Rating: 0 0 |Link to Comment
  • A Contrarian Take On the Countrywide Acquisition [View article]
    How about CFC is worth less than nothing and B of A has tons of outs to bust the deal:

    wcvarones.blogspot.com...
    Jan 18 00:01 am |Rating: 0 0 |Link to Comment
  • BofA Will Lose Billions in Countrywide Deal [View article]
    Or maybe not:

    wcvarones.blogspot.com...
    Jan 17 23:55 pm |Rating: 0 0 |Link to Comment
  • Bank of America's Countrywide Investment: Time Will Tell [View article]
    It is naive to believe that BofA is not hedging this transaction via short sales, swaps, or options.

    If they hedge it, it's a free half billion dollars, with the added bonus of the interest rate spread between the 7.25% they receive on the preferred and the 3% they'd pay shorting the common.

    Unhedged, it's a huge gamble.

    If BofA did not hedge this, they are almost criminally negligent with shareholder funds, passing up a free-money, riskless-arbitrage deal for a riverboat gamble.

    More details here
    Aug 24 12:50 pm |Rating: 0 0 |Link to Comment
More on BAC by W.C. Varones
Comments by Ticker
W.C. Varones'
Comments Stats
25 comments
Rating: 0 (0 - 0 )