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  • Bank Of America - An Ironic Opportunity For Superior Appreciation [View article]
    Many, many annalists have been pounding the keyboard for BAC these past months and it stays flat.
    Tell me how raising the interest rates will be beneficial to BAC when they cannot get enough people to buy houses now? Will they start buying houses when the interest rate is higher? The salaries are basically flat during the Obama rein.
    Where do you see someone borrowing money at a higher rate?
    Mar 16, 2015. 05:13 PM | 8 Likes Like |Link to Comment
  • Bank Of America: Stressed Over Nothing [View article]
    You can make fun of fun fun but so far I see nothing happening with any degree of certainty to move this stock. We are waiting for the Fed. to increase profits? Hello. Might be time for a wake up call. The Fed. is not on the BAC board of directors and this President is not about to quit the pounding as well as others that think they deserve BAC capital.
    Mar 16, 2015. 05:01 PM | 3 Likes Like |Link to Comment
  • Bank Of America: Stressed Over Nothing [View article]
    How many decades do u suppose?
    Mar 16, 2015. 04:57 PM | 1 Like Like |Link to Comment
  • Bank Of America: Buy Below $16 Now [View article]
    I keep hearing that when interest rates rise, BAC will take off. Are you saying more people will borrow more money when the rates get higher?
    Doesn't make sense. I know the spread for the bank will be higher but I see less borrowing then now.
    Any comments will be appreciated.
    Mar 16, 2015. 12:48 PM | Likes Like |Link to Comment
  • Bank Of America: Buy Below $16 Now [View article]
    The board of directors 1st and ONLY prerogative is to keep their jobs and immense salaries. Nothing you and I do regardless of BAC's actions will mean anything. (Not enough shares)
    I feel management moves in micro steps to NO steps at all. Why? Don't rock the boat and you can stay on the gravy train that much longer. Make a BIG move, and it gets noticed, and if you make the wrong call your chances of falling off the train are much greater.
    Mar 16, 2015. 12:05 PM | 3 Likes Like |Link to Comment
  • Bank Of America: Buy Below $16 Now [View article]
    I have no problem with the head man but for a pay check of $14 million I expect MUCH more.
    Mar 14, 2015. 04:26 PM | 4 Likes Like |Link to Comment
  • Bank Of America: Buy Below $16 Now [View article]
    Mar 14, 2015. 04:24 PM | 1 Like Like |Link to Comment
  • Bank Of America: Buy Below $16 Now [View article]
    BAC Jan 15 2016 20 Calls are going for 0.25. If you have enough shares.
    Don't think it will hit 20 but that's o.k. with me. As long as it gets close.
    Mar 14, 2015. 04:20 PM | 1 Like Like |Link to Comment
  • Bank Of America: Buy Below $16 Now [View article]
    Get real and talk cash!!! He raised it 4 cents. lol lol
    Mar 14, 2015. 04:09 PM | 4 Likes Like |Link to Comment
  • Bank Of America: Buy Below $16 Now [View article]
    The rudder is stock!
    Mar 14, 2015. 04:07 PM | Likes Like |Link to Comment
  • Bank Of America: Buy Below $16 Now [View article]
    Mar 14, 2015. 03:59 PM | 1 Like Like |Link to Comment
  • Bank Of America: Are We Going Sideways For Another Year? [View article]
    BAC is good for the long term. Just hope I live that long.
    Mar 12, 2015. 04:29 PM | 19 Likes Like |Link to Comment
  • BofA must resubmit capital plan; Deutsche and Santander rejected [View news story]
    I have 12,000 shares and BAC does nothing. If I did not keep writing options I would of not made anything in the five years I have owned it.
    Mar 12, 2015. 12:10 PM | 1 Like Like |Link to Comment
  • BofA must resubmit capital plan; Deutsche and Santander rejected [View news story]
    I have been thinking the way you talk and nothing is happening but me getting older.
    Mar 12, 2015. 12:06 PM | 1 Like Like |Link to Comment
  • BofA must resubmit capital plan; Deutsche and Santander rejected [View news story]
    Those stock buybacks are just another Wall Street scam
    By Jeff Reeves, MarketWatch
    Beware of corporations bearing shareholder gifts
    Automaker General Motors recently made a bit of splash by announcing a $5 billion stock repurchase program.
    Investors initially seemed pleased, ( the one-day pop that General Motors (GM.XX) stock enjoyed on Monday. But should they be so optimistic?
    For starters, it's worth noting that the buyback plans were not made out of a sense of obligation; the threat of a proxy fight with activist investor Harry J. Wilson forced GM's hand, whether the board and other shareholders really liked the idea or not.
    But even if you want to say Wilson has the best interest of all GM stockholers at heart and not just his own pocketbook, the fact remains that buybacks are one of the most dubious tricks on Wall Street.
    It is an open questions as to how much stock buybacks help publicly traded companies -- or if they even help at all.
    U.S. mega-cap stocks, however, don't seem to care much about whether repurchases work or not. All they seem to care about is that everyone else is doing them, so they should, too.
    According to Bloomberg, S&P 500 components were on track to spend a record $914 billion on buybacks last year ( -- roughly 95% of all corporate earnings!
    That leaves it up to investors to read between the lines and figure out whether companies are just blindly participating in the buyback frenzy, or actually being thoughtful about providing value to their shareholders.
    Sadly, it appears that in most cases, they are doing the former.
    The intentions of a share repurchase plan are simple: to "return capital to shareholders" by spending money in a way that makes the stock go up and shareholders wealthier as a result.
    The primary idea is that buying back existing shares decreases the supply of outstanding stock, and gives existing shareholders a bigger piece of the company.
    Furthermore, stock repurchases are a clever accounting trick to inflate the much-publicized earnings per share metric for a stock. One way to increase EPS is to see bigger profits that increase the numerator in this calculation, but shrinking the number of shares in the denominator can have the same effect.
    In this age of challenging corporate profits, a little bump to the bottom line can go a long way. And nowadays, when cash is cheap and rates are low, "investing" in yourself seems to make a lot of sense for corporations with money to burn, given the alternatives.
    Accordingly, many executives consider the buyback boom a no-brainer.
    Do buybacks actually work?
    Trouble is, stock buybacks are only a boon in theory. In practice, buybacks frequently don't do much at all for shareholders, and there is little corporate accountants can do to change the state of the underlying business.
    Here's a fun list of underperforming blue-chips that spent a bundle on buybacks in 2014, to no avail:
    Exxon Mobil (XOM) reported stock buybacks of $13.2 billion ( in 2014. But that couldn't overcome weak energy prices, and shares tumbled 9% compared to an almost 12% gain for the S&P 500 (SPX) .
    Tech titan International Business Machines (IBM) boasted in a chairman's letter that it repurchased $13.7 billion in 2014 ( bad the stock dropped 12% on the year.
    Machinery mega-cap Caterpillar(CAT) announced in its last 10-K filing ( that the company repurchased $4.2 billion worth of stock in 2014 -- all for the stock to basically tread water, with a measly 1% gain on the calendar year.
    Aviation giant Boeing (BA) spent $3.2 billion on buybacks in 2014, according to its latest 10-K filing (, and still lost about 5% that year.
    Restaurant icon McDonald's(MCD) ) reported ( $3.2 billion in share repurchases, but the stock slid 3% on the year.
    Telecom player AT&T(T) spent $1.6 billion in calendar 2014 to buy back stock, according to its financials, ( but shares declined about 4%.
    Now, you can pooh-pooh these particular mega-caps as companies with their own specific problems. But that's the point -- massive buyback plans cannot change the fundamentals of a business, and turn a stock in a tough spot into a good investment.
    On the flip side, do you really think Apple (AAPL) has gone up so dramatically ( because of buybacks? Any investor knows it's about the prodcuts; the iPhone 6 launch and highly anticipated Apple Watch rollout ( are much bigger drivers of Apple stock.
    Perhaps repurchasing stock lessens the pain during a rough patch, or creates a modest tailwind when times are good. But isn't there anything better these companies could be doing with that cash, like R&D or acquisitions? Or why not issue a special shareholder dividend instead?
    The bottom line is that buybacks don't change anything substantive in a stock.
    It's important to be rational about how and why a company is buying back stock. Here are some questions to ask before you get giddy about a stock buyback:
    What's the alternative? Economists refer to the road not taken as the "opportunity cost" of a venture. If a company really has no other good options for its money, then a buyback may make sense. Except that raising a dividend would be a juicier alternative to many shareholders. Yes, acquisitions and R&D can be risky and amount to nothing. But the same is true for buybacks sometimes. Investors need to ask where else the money could be spent -- even if management isn't creative enough to ask it themselves.
    Is the buyback affordable? It's one thing for a cash-rich company with massive cash flows to earmark a few billion dollars for buybacks. But borrowing cash or bleeding the coffers just for repurchases can be a disturbing sign. In fact, GM's announcement of a $5 billion stock buyback will "delay any potential consideration for an upgrade" to its credit rating, according to Moody's ( Hamstringing liquidity is not a wise way to run a business.
    Do repurchases fuel stock awards? Another clever trick among Wall Street sharks is to buy back stock to maximize the value of stock awards to top executives. As options are exercised and more shares are doled out to company insiders, buybacks are a way to ensure those execs aren't diluted by the issuance of extra shares. In fact, Apple CEO Tim Cook has been open about the company's repurchase plans as a way to reduce dilution of employees who get compensated in Apple stock. While keeping employees happy and productive can have its benefits, shareholders need to ask if what's good for staffers is necessarily good for them.
    Are companies buying high? It's worth noting that Apple initiated its buyback program at the end of 2012, with shares were trading for an adjusted price of $95 or so. The stock promptly dropped into the $50s over the next several months despite Apple buying billions worth of its own stock at elevated levels.
    All this is not to say that stock buybacks are useless. In some circumstances a repurchase of stock makes sense, both for the company and for individual shareholders.
    But it often appears that some S&P 500 corporations are committed to buying their own stock at elevated levels to enrich executives because they have no good ideas for growth.
    Why pay a bigger dividend or develop a new product when you can buy back shares, ride the bull market, and blame the strong dollar on lagging performance?
    Individual investors shouldn't be duped by these tactics. You need to think seriously about whether buybacks are actually in shareholders' best interest.

    Mar 12, 2015. 12:02 PM | 2 Likes Like |Link to Comment