For Exelon, A 20% Rally Is Just The Beginning... [View article]
I've been bullish a holder and increased my position substantially during the decline. Good call to buy low congratz to all who did so and followed me doing the same as some of my followers here have done. The dividend cut was the catalyst for the extent of the decline at it had - that was the grand buying opportunity but it should continue to do well as time goes on. We are still suffering from the economic slowdown. This is continuing with the declining energy prices. Benefiting EXC on the cost side but in their most recent reporting, they have cut some good deals on the wholesale power side. Also doing good supply work during the storm damage days in the upper East Coast where they didn't suffer as much damage.
Tobacco stocks looks ripe for more gains, thinks money manager L.A. Little. It's a case of more of the same in the sector as the cash-rich companies continue to pump out healthy dividends to attract yield-hungry funds. The usual suspects (MO, PM, BTI, RAI, LO) in the sector look to be steady performers while sleepers include Vector Group (VGR) and Universal Corporation (UVV). [View news story]
Out of the group VGR has the least tobacco and could outperform on total returns based on their real estate holdings where the REITs are going gang busters right now. I'd stay away from UVV because of their dependence on international supplies and dependency on contracts with cigarette companies where many are going toward direct purchase from growers, coops and government controlled parastateal controlled marketing. They've been burnt previously on some kick-back payment deals by the FTC.
Bank Of America Looks ... Intriguing [View article]
I don't think so. Read my first comment in this thread. The mortgages backing these bonds are now performing better with few defaults and the assets backing the loans are going up in value. Home price are up sharply and supply can't meet demand because of the current low interest rates that are going to continue into 2015. The bonds are quoted at a discount to face value and BAC I believe is buying them. By the time they go to trial - they may own almost all of those bonds and can easily pay off any settlement with the profits from the rise in their value.
Bank Of America Looks ... Intriguing [View article]
It is also risky to stay out of the market. I only recently started adding significantly to my BAC position with an average date of my IRA account holding of April 10 and its providing me we an annual rate of return of over 60%. Compare this to a risk free investment in Treasury securities that are in danger of falling sharply when rates start increasing. Can you imagine the risk of foregoing a possible double or triple in the price of BAC in comparison to that kind of a loss in a "risk free" investment.
Public Service Enterprise Group Management Discusses Q1 2013 Results - Earnings Call Transcript [View article]
My biggest take-away from this is " we've never ever shied away from the fact that Solar is not the competitive cost alternative for energy supply."
Utilities are being forced to install solar power at costs with no immediate benefit to customers nor stockholders. Never in my lifetime will solar power be competitive to provide a positive return nor lower utility bills for customers. In my future analysis of investments in electric utilities I'll be considering how much money is being waisted on solar power. I believe it should only be a showcase model to the environmentalists and enough to plakate regulatory commissions for the needed PR.
Bank Of America Looks ... Intriguing [View article]
Good value investor intelligence but back in 1970 - been there that. You would have needed a lot of guts to buy into that drop. We don't have that kind of market right now and yes BAC is terribly undervalued according to traditional metrics. The problem remains on the litigation black box.
The double book scenario is a good possibility but still a long shot until the market can start disregarding the worry holding it back. The MBIA case is causing some concern right now. But here too the book value comes into play. How many MBIA bonds does BAC own? I believe its a significant position and it would be ridiculous to award people who now own the bonds because most for these settlements depend on when you owned them and when you sold them. My MBIA bond has appreciated better than prime stuff this year. And, they never missed a coupon payment.
If the MBIA people win their claim, would they be willing to sell back all the bonds to BAC? A bond yielding over 8% and not callable for another 10 years?
Bank of America (BAC) asks a federal judge to dismiss a $1B DOJ lawsuit accusing its Countrywide unit of selling defective mortgages to Fannie and Freddie just as the real estate market was busting. District Judge Jed Rakoff - after hearing arguments this morning - says he intends to issue a ruling in about two weeks. [View news story]
BAC didn't do anything in the situation except for bailing out Countrywide to save the whole economy. Trying to punish the innocent will do no good. The Judge has to realize that it was the homeowners that couldn't afford to continue to pay their loans as the ultimate cause for the melt down. In all cases, these were performing loans that defaulted after bundled securities were sold. There was risk involved. The risk was explained in the prospectus.
Citigroup's (C) reluctance to pare its mortgage assets at fire-sale prices could pay off, says KBW, as it now stands to greatly benefit from rising home prices. It's a flow vs. stock argument as Citi - compared to WFC, JPM, or USB - does a relatively small amount of (now under profit-pressure) mortgage origination volume, but still has loads of questionable paper on its books. Also positioned to benefit is BAC. [View news story]
Nice story in the Charlotte OBserver on this for BAC.
Demystifying The Microsoft/Apple Comparison Argument [View article]
I like the market cap comparison chart. I did the same with the stock price several weeks ago and saw the same pattern. I believe AAPL has some more downside to go and will then follow the same type of path for many years after - as MSFT. I sold my position.
"There are less ways to cheat on a balance sheet than an income statement," says Bruce Berkowitz, explaining why he focuses on the one rather than the other (and why he'll probably never be a buyer of auto stocks). In this great 35-minute chat from late last year, he again makes his case for AIG and BAC - "it's the 90s all over again" - and SHLD - selling for the liquidation value of its merchandise; the brands and the real estate are free. [View news story]
BAC's balance sheet is audited not only by the required public accounting firm by the NYSE and SEC but the whole bank regulation community including the Department of the Treasury and the IRS. They are constantly badgered by the public scrutinizing it including the Congressional banking committees. The amounts being carried for assets are very conservative estimates of values. I believe this to be true when I see that businesses that are sold are turned into cash at a higher value than what they were carried. Marketable securities are at quoted values for the end date of the period reported. Liabilities have been previously overstated and some have been recently reduced from what I believe is IRS scrutiny seeing that this could have been a tax dodge. Real estate assets are being carried at foreclosure values and are now being sold at higher prices in a rising market for homes and commercial property. One only has to look at how well the REITs are doing in the market. Amounts being set aside for litigation claims are not understated becuase the amount of the settlement where many are settled out of court are fixed. Its only a distribution of money agreed to already that if any change is to be made it could be reduced on the balance sheet if all the claimants do not come forward to take it.
Bank of America (BAC) shareholders better familiarize themselves with Article 77, writes Mark Palmer, as it's possible the $8.5B the bank has reserved to handle claims against Countrywide MBS will be woefully small. At issue is an Article 77 proceeding set to begin May 30 at which a judge could toss the $8.5B settlement. The number might then reach as high as $60.5B, writes Palmer - about 24% of the bank's book value. [View news story]
The argument is that the derivative suits have not surfaced. Not only were the mortgage holders harmed, but the stockholders, the employees and the office cleaning crews. This extends also to all their banking customers, all the tax payers that help to bail them out, the Treasury employees who's careers were harmed, and the terrorists. The economic collapse harmed the all wage earners, annuity stipend recipients, retirees, students and all of their relatives. To compensate all these victims the argument is to set aside enough to eclipse the entire wealth of the world. Unfortunately this will not work because the IRS will not allow this tax dodge scheme to continue much longer - much more in fact will return to the balance sheet as cash.
2 Top Analysts Make A Bullish Case For Bank Of America Stock [View article]
"right around the key support levels (the 50 and 200-day moving averages). " The 200 day average on you chart is at 10 well below current support. And, you offer no original analysis of your own. Rehashing other reports and not accurately interpreting charts is just not the way to go. The stock broke out above its 20-day average, is picking up more analyst buy recommendations and is well on its way to set a new high. Up pre-market this moring and well on its way to hit 13 again and I give it a 10% chance it will hit 14 within 4 months. This is definitive forecasting - where is your's.
Senators from both parties have introduced legislation aimed at easing the airport congestion and flight delays caused by sequestration. One bill would give the Department of Transportation and FAA the ability to move funds between different accounts in order to reduce the furloughs for air-traffic controllers. The leaves of absence have so far been distributed evenly among all controllers, regardless of whether they work at busy or quiet airports. [View news story]
Senators - do something? That's a laugh. This is what he Congress has done already! What is needed is for the President to declare a National emergency to staff the towers with military air controllers if the DOT/FAA does not enforce maintenance of usual duty schedules. Then voters have to wait to elect responsible people to run our government, pass an annual budget and tax legislation to fund a smooth running government.
Exelon: The President's Utility Continues Its Record Of Futility [View article]
Sell EXC for WSC - The following chart tells the tail, LOL.
http://yhoo.it/105dqXY
For Exelon, A 20% Rally Is Just The Beginning... [View article]
Tobacco stocks looks ripe for more gains, thinks money manager L.A. Little. It's a case of more of the same in the sector as the cash-rich companies continue to pump out healthy dividends to attract yield-hungry funds. The usual suspects (MO, PM, BTI, RAI, LO) in the sector look to be steady performers while sleepers include Vector Group (VGR) and Universal Corporation (UVV). [View news story]
Bank Of America Looks ... Intriguing [View article]
Bank Of America Looks ... Intriguing [View article]
Public Service Enterprise Group Management Discusses Q1 2013 Results - Earnings Call Transcript [View article]
Utilities are being forced to install solar power at costs with no immediate benefit to customers nor stockholders. Never in my lifetime will solar power be competitive to provide a positive return nor lower utility bills for customers. In my future analysis of investments in electric utilities I'll be considering how much money is being waisted on solar power. I believe it should only be a showcase model to the environmentalists and enough to plakate regulatory commissions for the needed PR.
Bank Of America Looks ... Intriguing [View article]
The double book scenario is a good possibility but still a long shot until the market can start disregarding the worry holding it back. The MBIA case is causing some concern right now. But here too the book value comes into play. How many MBIA bonds does BAC own? I believe its a significant position and it would be ridiculous to award people who now own the bonds because most for these settlements depend on when you owned them and when you sold them. My MBIA bond has appreciated better than prime stuff this year. And, they never missed a coupon payment.
If the MBIA people win their claim, would they be willing to sell back all the bonds to BAC? A bond yielding over 8% and not callable for another 10 years?
Bank of America (BAC) asks a federal judge to dismiss a $1B DOJ lawsuit accusing its Countrywide unit of selling defective mortgages to Fannie and Freddie just as the real estate market was busting. District Judge Jed Rakoff - after hearing arguments this morning - says he intends to issue a ruling in about two weeks. [View news story]
Duke Energy: A Growth-By-Acquisition Strategy Income Investors Should Watch A Bit Closer [View article]
I'm looking forward to seeing my fellow stockholders at next week's annual meeting here in Charlotte this Thursday.
Citigroup's (C) reluctance to pare its mortgage assets at fire-sale prices could pay off, says KBW, as it now stands to greatly benefit from rising home prices. It's a flow vs. stock argument as Citi - compared to WFC, JPM, or USB - does a relatively small amount of (now under profit-pressure) mortgage origination volume, but still has loads of questionable paper on its books. Also positioned to benefit is BAC. [View news story]
http://bit.ly/ZLBODF
Initially there are some complaints but shedding the mortgage servicing business will be getting rid of a legacy headache.
Demystifying The Microsoft/Apple Comparison Argument [View article]
"There are less ways to cheat on a balance sheet than an income statement," says Bruce Berkowitz, explaining why he focuses on the one rather than the other (and why he'll probably never be a buyer of auto stocks). In this great 35-minute chat from late last year, he again makes his case for AIG and BAC - "it's the 90s all over again" - and SHLD - selling for the liquidation value of its merchandise; the brands and the real estate are free. [View news story]
Bank of America (BAC) shareholders better familiarize themselves with Article 77, writes Mark Palmer, as it's possible the $8.5B the bank has reserved to handle claims against Countrywide MBS will be woefully small. At issue is an Article 77 proceeding set to begin May 30 at which a judge could toss the $8.5B settlement. The number might then reach as high as $60.5B, writes Palmer - about 24% of the bank's book value. [View news story]
2 Top Analysts Make A Bullish Case For Bank Of America Stock [View article]
I know - you hate to be wrong.
Senators from both parties have introduced legislation aimed at easing the airport congestion and flight delays caused by sequestration. One bill would give the Department of Transportation and FAA the ability to move funds between different accounts in order to reduce the furloughs for air-traffic controllers. The leaves of absence have so far been distributed evenly among all controllers, regardless of whether they work at busy or quiet airports. [View news story]