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  • 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, 2014. 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, 2014. 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, 2014. 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, 2014. 09:01 AM | 1 Like Like |Link to Comment
  • Former Bank Of America Banker Sentenced For Stealing [View article]
    New headline I just read: 150,000 Bank of America Employees went to Work Yesterday. And, none of them stole anything and gave excellent customer service! At Starbucks I saw an employee nosh a donut - slap his hand and sort the stock! LOL
    Mar 21, 2014. 08:54 AM | 7 Likes Like |Link to Comment
  • Bank Of America: A Well-Positioned Stock [View article]
    Expected divided increase - I believe I heard this a year ago. When I see it - I'll believe it.
    Mar 18, 2014. 09:20 AM | 2 Likes Like |Link to Comment
  • 3 Things To Know About Bank Of America Right Now [View article]
    Guessing the perfect bracket to capture Buffet's challenge is probably less difficult than guessing exactly when and how much their dividend is going up.
    Mar 17, 2014. 08:44 AM | 2 Likes Like |Link to Comment
  • Bank Of America: Bond Market 'Stress Test' Results [View article]
    Default risk I believe is less of a factor than general prospects for the economy. Inflation probably is the biggest worry. Schwab in their latest publication to their customers puts forth that short term rates are going to hold where they are for a considerable longer time than imagined only a few months ago. We are now seeing a price firming for bond funds and continued low payouts for
    CD's. Your higher default risk for a bank too large to fail provides a yield premium and with diversification among peers in the same industry would yield better total results. A more important worry factor would be call risk and the need to reinvest the proceeds from called securities at continuing low coupon rates. BAC has been redeeming high coupon securities and could do open market purchases.
    Mar 11, 2014. 06:12 AM | 1 Like Like |Link to Comment
  • A Lower Risk Way To Invest In Utility Stocks [View article]
    Guarantee a loss from your utility dividends. Is it worth it? If you need diversity in a utility portfolio the thing to do is own them all. If can't afford to own a 100 shares of each or at least 5 for diversity, then you probably should not own any and would be better off in a broader stock portfolio of stocks. The risk of utility ownership is very small - not smaller than a US insured CD with a bank but electric utilization is constantly increasing and many companies have an excellent record of increasing dividends.
    Mar 10, 2014. 06:27 AM | Likes Like |Link to Comment
  • Bank Of America: Proof That Mismanagement Is A Thing Of The Past [View article]
    Decreasing leverage is not a management success - it was a regulatory requirement. They continue to pay the piper over the Countrywide takeover and management is being much more conservative in their loan policies. All makes for slower but sure growth and maybe a blessing when their capitalization requirements are again reviewed it would allow more confidence to boost the dividend. Again, thanks Josh for the opportunity to comment.
    Mar 7, 2014. 09:02 AM | 3 Likes Like |Link to Comment
  • Bank Of America: Get Long On Rising Margins [View article]
    Lawyers love your good news. Makes BAC a bigger target for litigation. Their momentum is slackening and they are laying off their loan initiating employees. Higher rate margins with reduced volume of business could produce lower profits. So all lawyers reading this - there is not much left to go after. Risk of losing is too high in comparison to any possible gain in winning.
    Mar 5, 2014. 09:06 AM | 1 Like Like |Link to Comment
  • Ukrainian 1-Day Bear Market: Hope You Enjoyed It [View article]
    I took Buffet's advice and bought during the heat of war. As soon as the war was over (the next day) I sold!
    Mar 5, 2014. 08:59 AM | 1 Like Like |Link to Comment
  • Our Thoughts On Warren Buffett's Thoughts [View article]
    I hope he doesn't expire before the options.
    Mar 4, 2014. 08:43 AM | 2 Likes Like |Link to Comment
  • Still Buying Bank Of America On Any Dips [View article]
    It has had a good increase last year and currently has been consolidating above 16. I also have 16 as a target price to add - if it slips below 16 without any fundamental change I would certainly add to my positions and have plenty of cash to do so.
    Mar 3, 2014. 08:59 AM | 1 Like Like |Link to Comment
  • How Bank Of America Reaches $25, Part II [View article]
    Josh, your estimate is OK based on the historic basis for the valuation of the bank alone. But, with Countrywide and Merrill under their wing - these companies historically were at higher valuation ratios. My estimate was similar to yours considering the total new capitalization and stock dilution with the previous P/E afforded the bank. Now, with growth, synergy with the new partners. affording it a slightly better valuation ratio and allowing for the impact of stock buy backs - I'd say the potential could easily be into the mid 30's in the 3 year time frame.
    Feb 27, 2014. 08:51 AM | 2 Likes Like |Link to Comment