Bank Of America's Mean Reversion Illustrated [View article]
Apart from Northern Europe...like in the USA where there has been the total collapse and creative destruction...in the Southern Eurozone and I mean particularly France...the semblance of normality is only an illusion because government spending masks all manner of problems...as an example a cheap French wine cannot ompete on price against a cheap Californian wine in the UK...why because the French economic system is driven by bureaucracy and tax after tax after tax...so that literally all real economic production is being killed off (except for the huge multinationals) the EU/ Euro and its own bureaucracy has made the French problem even worst...and the incompetent Francois Hollande is driving the final nail in the French coffin with his own insane policies (75pct tax etc.,)...this has been a long process of national suicide started by another socialist Francois Mitterand...FRANCE THE SECOND LARGEST ECONOMY IN THE EU (AKA NEO SOVIET UNION) is well and truly f....d... LLA REVOLUTION COMING WATCH THIS SPACE !!!
Bank Of America's Mean Reversion Illustrated [View article]
As an owner of BAC I would love to agree that the stock will quickly bounce back to book value circa USD 21 the reality is that the financial world has changed since the melt down...
1.Since the bail-out the large banks have become semi-nationalized, they have become a political tool (particularly under Obama) the demon that the people must be protected from. 2.Even with the stress test...deleveraging, more efficiencies, the banks/ the finacial system are much more volatile...so that even leverage of 10x might be too much and the banks could go bankrupt like in Cyprus. 3.The abnormal liquidity provided by the FED will make the financial volatility even worst. 4.I am not a conspiracy theorist, but Obama / the political establishment / the mediae / the instantaneous internet blogs/ the hedge funds / computer tading etc., can bring down the BIG BANKS when they please...as they did not too long ago by GROSS EXAGERATION !!! 5.Europe / EU AKA NEO SOVIET UNION in spite of the recent calm is completely disfunctional with most of its banks very vulnerable to failure...this will not improve with time.
THAT IS WHY BAC SHARE PRICE WILL ALWAYS TRADE AT A DISCOUNT TO BOOK VALUE 21 AND REVERT TO TANGIBLE BOOK VALUE 13...THE BUSINESS MODEL HAS CHANGED.
Yes...I think the market commentators are overhyping , too bullish , fallen in love with BAC for their own reasons...now they need work from BAC...not one of them was bullish when the price was 5...BAC is a huge tanker a huge juggernaut (like the US economy) it will take another 2 -3 years to turn around...that s if the US / Euro / World economy hold up...
Avoid the "origination-reliant" bank names ahead of Q1 earnings, says FBR's Paul Miller, as the strong mortgage results from the past few reports will likely weaken. Most at risk: BAC, FITB, FBC, USB, STI, and WFC. That mortgage profits have worsened isn't news, but Miller suggests things have gotten worse than previous muted expectations. [View news story]
I agree there is a lot of hope built into BAC short term, though longer term 2-3 years out am bullish...to turn this juggernaut around will take longer... Will retest resistance 11.36 and will likely trade in a range of 11-11.50 during the summer months...
"We're now at the point where it's about boots on the ground rather than the latest lawsuit," says SNL's Nancy Bush as Bank of America (BAC) CEO Moynihan summons 100 of his regional chiefs to a private meeting where they'll be egged on to move more product. The bank, she says, is notable for being "lousy" at cross-selling. [View news story]
Yes it s a change of culture...the old fashioned BAC banker who used to make his money by skimming off money on criminal overdraft charges will now have to work for his money...as a shareholder and customer I welcome the change...so to Bank America employees : Work For your money !!! You are not govenment employees !!! Or Simple : You are Fired !!!
"I could do this the rest of my life," says Bank of America (BAC) CEO Moynihan of his current job. The days of acquisitions, share buybacks, and dividends all at the same time are over, he says, vowing to forego some profit during good times so as not to give it all back during the bad. Think of it as the anti-Chick Prince: "While the music's playing, you've got to dance." [View news story]
YES WE SHAREHOLDERS PREFER SLOW STEADY PROGRESS SO THAT WE SURVIVE WITHOUT TARP SHOULD THE ECONOMY GO SOUR AS IT ALWAYS DOES EVENTUALLY.
More on bank capital return plans: JPMorgan (JPM) an increase in the dividend to $0.38 from $0.30 and $6B in share repurchases over the next year (the plan was approved, but the Fed has asked for a resubmission this year). Bank of America (BAC) no increase in the dividend, but share repurchases of $5B and the redemption of $5.5B in preferred stock. [View news story]
a share buyback of 10 billion wow i.e a 8 pct yield dividend buy buy buy buy buy
Bank of America (BAC) board member David Yost nearly doubled his stake in the company, buying 20K shares last Thursday for $11.53 each. [View news story]
until march result of stress test price will go nowhere...
Bank of America (BAC) board member David Yost nearly doubled his stake in the company, buying 20K shares last Thursday for $11.53 each. [View news story]
Bank of America (BAC) aims to please regulators and get a tax break by moving more than $50B of derivatives business out of Dublin and into its U.K. subsidiary. The Irish don't want the business, the British want to keep it under a closer eye, and BofA's U.K. unit is sitting on $8B in tax-deferred assets which it will now be able to monetize. [View news story]
The Irish also closed down their Papal Embassy in Rome supposedly to save a few Euros, the Irish have lost their way...
Bank Of America First Quarter Earnings Preview [View article]
My guess
Share Price 2013 range 9-12
Bank Of America's Mean Reversion Illustrated [View article]
Apart from Northern Europe...like in the USA where there has been the total collapse and creative destruction...in the Southern Eurozone and I mean particularly France...the semblance of normality is only an illusion because government spending masks all manner of problems...as an example a cheap French wine cannot ompete on price against a cheap Californian wine in the UK...why because the French economic system is driven by bureaucracy and tax after tax after tax...so that literally all real economic production is being killed off (except for the huge multinationals) the EU/ Euro and its own bureaucracy has made the French problem even worst...and the incompetent Francois Hollande is driving the final nail in the French coffin with his own insane policies (75pct tax etc.,)...this has been a long process of national suicide started by another socialist Francois Mitterand...FRANCE THE SECOND LARGEST ECONOMY IN THE EU (AKA NEO SOVIET UNION) is well and truly f....d... LLA REVOLUTION COMING WATCH THIS SPACE !!!
Bank Of America's Mean Reversion Illustrated [View article]
As an owner of BAC I would love to agree that the stock will quickly bounce back to book value circa USD 21 the reality is that the financial world has changed since the melt down...
1.Since the bail-out the large banks have become semi-nationalized, they have become a political tool (particularly under Obama) the demon that the people must be protected from.
2.Even with the stress test...deleveraging, more efficiencies, the banks/ the finacial system are much more volatile...so that even leverage of 10x might be too much and the banks could go bankrupt like in Cyprus.
3.The abnormal liquidity provided by the FED will make the financial volatility even worst.
4.I am not a conspiracy theorist, but Obama / the political establishment / the mediae / the instantaneous internet blogs/ the hedge funds / computer tading etc., can bring down the BIG BANKS when they please...as they did not too long ago by GROSS EXAGERATION !!!
5.Europe / EU AKA NEO SOVIET UNION in spite of the recent calm is completely disfunctional with most of its banks very vulnerable to failure...this will not improve with time.
THAT IS WHY BAC SHARE PRICE WILL ALWAYS TRADE AT A DISCOUNT TO BOOK VALUE 21 AND REVERT TO TANGIBLE BOOK VALUE 13...THE BUSINESS MODEL HAS CHANGED.
Bank Of America Is Not Cheap [View article]
Yes...I think the market commentators are overhyping , too bullish , fallen in love with BAC for their own reasons...now they need work from BAC...not one of them was bullish when the price was 5...BAC is a huge tanker a huge juggernaut (like the US economy) it will take another 2 -3 years to turn around...that s if the US / Euro / World economy hold up...
Avoid the "origination-reliant" bank names ahead of Q1 earnings, says FBR's Paul Miller, as the strong mortgage results from the past few reports will likely weaken. Most at risk: BAC, FITB, FBC, USB, STI, and WFC. That mortgage profits have worsened isn't news, but Miller suggests things have gotten worse than previous muted expectations. [View news story]
I agree there is a lot of hope built into BAC short term, though longer term 2-3 years out am bullish...to turn this juggernaut around will take longer...
Will retest resistance 11.36 and will likely trade in a range of 11-11.50 during the summer months...
This Bull Market Has Legs [View article]
"We're now at the point where it's about boots on the ground rather than the latest lawsuit," says SNL's Nancy Bush as Bank of America (BAC) CEO Moynihan summons 100 of his regional chiefs to a private meeting where they'll be egged on to move more product. The bank, she says, is notable for being "lousy" at cross-selling. [View news story]
Yes it s a change of culture...the old fashioned BAC banker who used to make his money by skimming off money on criminal overdraft charges will now have to work for his money...as a shareholder and customer I welcome the change...so to Bank America employees : Work For your money !!! You are not govenment employees !!! Or Simple : You are Fired !!!
"I could do this the rest of my life," says Bank of America (BAC) CEO Moynihan of his current job. The days of acquisitions, share buybacks, and dividends all at the same time are over, he says, vowing to forego some profit during good times so as not to give it all back during the bad. Think of it as the anti-Chick Prince: "While the music's playing, you've got to dance." [View news story]
YES WE SHAREHOLDERS PREFER SLOW STEADY PROGRESS SO THAT WE SURVIVE WITHOUT TARP SHOULD THE ECONOMY GO SOUR AS IT ALWAYS DOES EVENTUALLY.
After-hours top gainers, as of 5:15 p.m.: MUX +4%. BAC +4%. DFS +3%. RRD +2%. MS +2%.
After-hours top losers: GLDD -31%. ULTA -11%. MWA -9%. KKD -6%. ARO -6%. [View news story]
More on bank capital return plans: JPMorgan (JPM) an increase in the dividend to $0.38 from $0.30 and $6B in share repurchases over the next year (the plan was approved, but the Fed has asked for a resubmission this year). Bank of America (BAC) no increase in the dividend, but share repurchases of $5B and the redemption of $5.5B in preferred stock. [View news story]
a share buyback of 10 billion wow i.e a 8 pct yield dividend buy buy buy buy buy
Bank of America (BAC) board member David Yost nearly doubled his stake in the company, buying 20K shares last Thursday for $11.53 each. [View news story]
until march result of stress test price will go nowhere...
Bank of America (BAC) board member David Yost nearly doubled his stake in the company, buying 20K shares last Thursday for $11.53 each. [View news story]
Bank of America (BAC) aims to please regulators and get a tax break by moving more than $50B of derivatives business out of Dublin and into its U.K. subsidiary. The Irish don't want the business, the British want to keep it under a closer eye, and BofA's U.K. unit is sitting on $8B in tax-deferred assets which it will now be able to monetize. [View news story]
Bank of America's CEO Discusses Q4 2012 Results - Earnings Call Transcript [View article]
Heading in the right direction, but will only start showing the real benefits in 2014, 2015
Bank Of America: Why A Stock Buyback Is More Likely Than A Dividend Raise [View article]
The ambition of Moynihan for BAC is : 1. Fortress Balance Sheet 2. Stable predictable earnings growth.
So I see modest dividend increase and stock buy-back...the real + action now for 2014