Seeking Alpha
  • NatchGreyes
    What do investors think about financial stocks? Will $AIG, $C, $BAC rise to their pre-2008 levels anytime soon?
    1/8/12
    Reply (18)
    • Rubenov: Not until Europe woes are behind us, which may take a while.
      1/8/12
    • DAG1996: if pre-2008 BAC means $50, a while indeed. perhaps a long while before some of the burned regain faith. still plenty legal and asset issues
      1/8/12
    • DAG1996: that said, perhaps $15-20 in a year or two isn't beyond possibility. for that reason, i'm considering buying too, but not banking on $40-50.
      1/8/12
    • anonymous#12: Never. To BAC have a $50 price tag it would be valued at 500B.....not any chance, better bet on the lottery.
      1/8/12
    • DAG1996: never say never - was $50+ 2006-2007 (aka pre-2008) perhaps again in 10 years or so - granted, a bit of a wait & risk, but not same as never
      1/8/12
    • talbano: 50 wouldn't even b pre-lehman when you factor dilution
      1/8/12
    • anonymous#12: Oh and that's without taking into consideration the new dilution of shares that is coming.
      1/8/12
    • anonymous#12: And clearly people don't know about the once in a lifetime, net income spreads, arbitrage risks before 2008s...
      1/8/12
    • anonymous#12: Talbano, around $20 would be pre-Lehman.
      1/8/12
    • talbano: really even w/ additional shares that were sold?
      1/8/12
    • anonymous#12: Talbano, BAC market cap in 2007 was around 200B. They now have 10.14B outstanding shares x $19.73=200B.
      1/8/12
    • anonymous#12: So at around $19.73-$20.00 their market cap would reach the same levels of 2007.
      1/8/12
    • talbano: gotcha - seems strange their stock could be lower and be at per-lehman but I trust your calc thanks for the info:)
      1/8/12
    • talbano: duh. It would make sense the price being lower/per share because of the additional shares .wasn't really thinking it through lil over tired
      1/8/12
    • anonymous#12: No problemo :)
      1/8/12
    • talbano: guess analysis and lack of sleep don't work...lol
      1/8/12
    • NatchGreyes: So, if you had shares of BAC, C, AIG, & GS at >20% loss would you dump them and take it or would you go long?
      1/9/12
    • Rubenov: Well, it depends on whether the money is needed or not. They will drift higher but never (IMO) to 2008 levels; I would sell covered calls.
      1/9/12