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Dividend Analysis: Bank of America Corp.

I have two comments to add:

1. There is no mention for long-term investor benefits if BAC completes its Countrywide deal. In a strict business sense, buying tremendous market share for dirt cheap is a pretty good bet to make. History will show if it was right or not.

2. Two other super quick and dirty Graham values are interesting: Average EPS over the last 7 years X 25 = $86.21. Trailing 12 months X 20 = $47.40. Current price ($33.31) is a 61% and 30% discount from those numbers, respectively. Pretty nice safety margin I'd say for a leading issue. Remember: the lower the price falls the less risk you have of paying too much.

I love those two valuations. They are a great way to identify stocks worth digging into. Example: if you do the 7 yr and the 12 months valuations on Coke you get $47.75 and $51.40, which at the current price ($56.40) represent an 18% and 10% premium, respectively. No bargain opportunity here! Move along before digging deeper into the financials!

Time to Short Financial Stocks - Starting with BofA

Shorting is not smart. Learn how to read the financials carefully, including understanding accounting rules. They have to recognize potential losses immediately, and they accrued big hits to their outstanding loans in 2006 and 2007. Translation: their reported income already factors in many more losses than have occurred to date. So when the "sky is falling" mentality stops earning ratings for the media and the market pulls out, they'll do very well. One more thing: people will need banks and houses in the future right? Good - if you must short, short Google. Online ad revenue is the next bubble to bust.