Short, Short, Short

Bank of America: Smarter Than We Think?

I do not like the Countrywide deal at all right now, I think it would make sense to walk away from it and pick up the pieces before bankruptcy auction as far as Countrywide deal is concerned.

As a contrarian, I believe the company will be fine long term but it seems they are trying to sweep too much under the rug as if we the public are stupid, better to come clean, cut the dividend, drop the countrywide deal as an equity purchase (pick up bonds and debt of the company, and take over the skeleton or bones from bankruptcy or pre-bankruptcy deal), get all skeletons out such as write downs as we know there are more bombs to drop with many of these companies.

The contrarian view is at some point BAC and other major banks will be realizing gains from their totally written off portfolio, and they will be substantial as most companies are doing complete write-offs of assets that have a value thay are just unloved or illiquid at the moment.

Not that I am bullish on the sector or BAC for the short term (there is just too much negative sentiment) but ussually when you have all the little guys are so negative on a company and everyone is bearish, buying puts, going short, it usually means that much of the unheard news or stuff that is expected to come out of the closet is already reflected in the price of the stock and the big guys want to drive it lower so they an A) Buy and B) Cover short positions at an even juiceier profit

My 2 cents!