Deep Value

Countrywide: Potential Short Squeeze in the Offing

Isn't a short sqeeze a supply/demand funtion? Buy volume doesn't necessarily have to increase so long as sales volume falls. As the time of the merger approaches there will be more certainty and therefore less risk so the spread should tighten. I don't think there will be much CFC selling as the merger approaches.

Dividend Analysis: Bank of America Corp.

If BAC cuts the common, won't the preferred be in danger as well?

Dividend Analysis: Bank of America Corp.

vaduz,

Do high earnings yields scare you too?

quicktake.morningstar....

Bank of America: Better Than Treasuries

ProHFAnalyst,

I totally agree. I would rather see BAC cut dividends than issue preferred stock. It's kind of like a "heads, existing shareholders lose a little... tails, existing shareholders lose a lot" deal. If BAC makes a spectacular turn around, shares get diluted. If the housing/credit markets keep sh*tting the bed we're stuck with an extremely high fixed cost.

Dividend Analysis: Bank of America Corp.

Mr. Dividends4Life,

I am disturbed by your analysis. If you think BAC is worth $25/share why do you own it? You also say that you think the dividend is safe. So basically, if you’re right, you will have a safe and secure dividend at just under a 10% yield. Do you think the market would allow such a deal? And if so, would you still be confident in the yield?

Also, your analysis uses historic numbers to estimate a valuation with no consideration for the complex reorganizations taking place as we speak and those to come in the near future. A purely quantitative analysis of a company obviously operating in an abnormal micro and maco-economic environment is irrelevant at best and at worst arguably irresponsible.

Morningstar's DCF model values BAC at more than twice the value your model suggests. So if you really do own BAC, for your sake, I hope Morningstar knows something you don’t.