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  • Bank Of America: 70% Upside Over The Medium Term [View article]
    Big item to consider is the appreciation of the value that is on the book, especially real estate. Home prices in Charlotte, NC are up 9.9% from the same month (Feb) last year. I don't see any for sale signs in my neighborhood. Foreclosed homes are selling for more than the mortgage liabilities to be recovered.
    Apr 4 09:25 AM | 1 Like Like |Link to Comment
  • Bank Of America: How Big Can The Dividend Get? [View article]
    Good analysis on the dividend potential. I hope more emphasis should be made on the stock buy backs. Additional litigation can require more set asides on the balance sheet to allow more income to go untaxed. This pot of money should be used to buy back more stock to resell after it goes up to at least book value. I'm ready to stand up at the stockholder's meeting to demand this.
    Apr 2 08:27 AM | 1 Like Like |Link to Comment
  • Bank Of America: Legal Ignorance Is Bliss [View article]
    The set asides are a mirage. When the fog goes away the taxes will come due. Still, there will be plenty of profits to shaore with stockholders and allow more stock buybacks.
    Apr 1 09:00 AM | 3 Likes Like |Link to Comment
  • Bank Of America: Not All Assets Are Created Equal [View article]
    On the books a corresponding liability exists. In actuality, the cash is still there. This should be used to buy back the stock and when it goes up to a double from the current level, sell back the stock into the market.
    Apr 1 08:57 AM | 3 Likes Like |Link to Comment
  • Bank Of America: Why Buybacks Are Better Than Dividends [View article]
    Its very plain and simple to see the stock buybacks are the thing to do. Obviously the management believes the stock is undervalued. Everyone needs to follow the buy low logic. They should have bought back all the stock at $5. Warren Buffet was there to do so - at a slightly higher price. Another thing to do is to set more cash aside on the balance sheet and use it to buy back stock. A good accountant can itemize it as a litigation expense. Cash is cash and its in the "bank" - all in the same pot. Then they can borrow more from the Fed at zero interest. That can be used to buy back more stock. There is no reason for the stock to continue to trade below book value. Regulators are trying to take away any smoke and mirrors - but in the sort run before they even examine the books, a major portion of the float can be taken off the market and then say "oopse your right" and sell it all back at double the price.
    Mar 31 11:39 AM | Likes Like |Link to Comment
  • Bank Of America: Why Buybacks Are Better Than Dividends [View article]
    Its very plain and simple to see the stock buybacks are the thing to do. Obviously the management believes the stock is undervalued. Everyone needs to follow the buy low logic. They should have bought back all the stock at $5. Warren Buffet was there to do so - at a slightly higher price. Another thing to do is to set more cash aside on the balance sheet and use it to buy back stock. A good accountant can itemize it as a litigation expense. Cash is cash and its in the "bank" - all in the same pot. Then they can borrow more from the Fed at zero interest. That can be used to buy back more stock. There is no reason for the stock to continue to trade below book value. Regulators are trying to take away any smoke and mirrors - but in the sort run before they even examine the books, a major portion of the float can be taken off the market and then say "oopse your right" and sell it all back at double the price.
    Mar 31 11:39 AM | Likes Like |Link to Comment
  • Bank Of America: Why Buybacks Are Better Than Dividends [View article]
    The number of shares used for compensation is minor compared to the amount being purchased.
    Mar 31 11:28 AM | Likes Like |Link to Comment
  • Great Northern Iron Now Worth Less Than $21, Will Fall To $0 In 15 Months [View article]
    GNI - The sharp drop has taken its toll but some continue to hold when they finally realize it will be worthless alternatives will be sought. $MSB is a good bet and $CLF.
    Mar 28 01:07 PM | Likes Like |Link to Comment
  • Environment For Bank Of America Continues To Improve [View article]
    I am trading off some of my regional bank stocks but had them because of their dividend payouts and steady increase of their payouts. IF BAC can start doing the same, I'll dump them all and just hold BAC. The B warrants should soon get back above $1.
    Mar 27 10:54 AM | 1 Like Like |Link to Comment
  • Bank Of America: More Cost Cuts On The Way [View article]
    I believe that if their business improves the common stock would be the best alternative for return of capital. If their credit rating improves it could be offset by a rise in the Fed rate that will make all debt securities tumble in the market. Why buy something right now that is bound to decline? Best to wait until the market pushes down these legacy debt issues. The higher the interest rate the lower the values and the better the buy back to benefit stockholders with an improved balance sheet.
    Mar 25 09:10 AM | 1 Like Like |Link to Comment
  • Can Bank Of America Trade At $40 In A Couple Of Years? [View article]
    Today's decline, the author here and commentators are missing the fact that historically this is very different business. With Merrill's historic valuation levels and that of Countrywide being much higher, book value will be a the minor valuation factor. Look at the Fed borrowing rate and the loan rate for a 30 year Jumbo with the vibrant real estate market. Stock price estimates are too conservative. Today's downgrades are only based on market performance versus other banks. If so, this is only sort term and the decline could very easily reverse more toward its full valuation potential.
    Mar 24 11:24 AM | 2 Likes Like |Link to Comment
  • Predictions For Bank Of America's Capital Return Plan [View article]
    If the bank keeps buying back stock they must think its going higher. Now is the time to do it. One CNBC commentator recently predicted 30 within a year. And, I agree with Josh - in the short term the capital return announcement could be volatile to the stock price. They should reward holders with a tender above the current market price. This would push the stock immediately higher and limit volatility, IMHO. If they were to tender for the outstanding warrants - the rally could be explosive.
    Mar 24 08:58 AM | 3 Likes Like |Link to Comment
  • Would Keynes Have Called This A 'Liquidity Trap'? [View article]
    The commercial banking sector is not caught in this. They have regained confidence in a recovering economy and are taking on more risk in their lending policies. Borrowers too. Its a no brainer to cancel high cost debt and refinance at lower interest rates. A good recent example is VGR taking on more debt canceling some old debt and having no change in their ratings for doing so. This still is not at a frenzied pace and economic growth is still too slow to worry about inflation. What the Fed can't do - the private sector will.
    Mar 24 08:45 AM | Likes Like |Link to Comment
  • Bank Of America: One More Reason To Go Long [View article]
    P/B is going higher making it more risky. The volatility this past week is a good example.
    Mar 22 05:15 PM | Likes Like |Link to Comment
  • Bank Of America Is Ripping Higher [View article]
    Don't snooze. Rip Vanwinkles will wake up 10 years from now and say hey they raised the dividend?
    Mar 21 09:01 AM | 1 Like Like |Link to Comment
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