Bank of America (BAC)

[iam802]

WSJ.

Official job cuts at 30k

[kennynah]

profit margin sure is going to be better.... and buffet is happy....

[winston]

13 cents away from a problem

I’m listening to Cramer, Roach and the other talking heads on TV. Bottom line from these folks is that the market's a buy. China is not going to have a hard landing says Roach, and according to Cramer THERE WILL NOT BE ANOTHER LEHMAN.

It’s getting impossible to figure what will happen next in this world. But to even think that there is a “0” chance of another TBTF failing is just cheerleading.

There are at least a dozen EU banks who have had their stocks collapse. Their market cap value is less than 1% of assets. The “Short Ban” in Europe is forcing global investors to take defensive positions in bank stocks where trading is not restricted. This is just adding to the selling in the US financial names.

Lehman went bust in a matter of days. The end came after the stock broke $5. When a stock breaks $5 there is a pretty decent chance it is headed to zero.

Institutional holders (there are a ton who own this dog) HAVE to off load stocks when the $5 level is breached.

I think that BAC should not trade under $5 based on their book. But that makes no difference at all. “Book” and “logic” have little to do with what is going on today.


http://brucekrasting.blogspot.com/2011/ ... oblem.html

[helios]

Then, BAC will reach $5+ ...

[millionairemind]

Banks and Finance
Warren Buffett suffers $5bn loss on Bank of America
Billionaire Warren Buffett is nursing a paper loss on his $5bn (£3.2bn) investment in Bank of America as shares in America’s largest lender again led Wall Street banks lower in a turbulent day’s trading.

http://www.telegraph.co.uk/finance/news ... erica.html

[kennynah]

i wonder if usd5bil is small change for this fella?

[helios]

Hey - what's the next level / support ?!

[winston]

not vested

Bank of America to cut 16,000 jobs: report

Bank of America plans to cut 16,000 jobs as part of a major restructuring plan by the end of 2012, when it would no longer be the largest US banking employer, the Wall Street Journal reported Thursday.

The cuts will take the banking giant's total employment to 260,000, the Journal said, the lowest level since 2008, when the bank acquired failing mortgage lender Countrywide Financial and the Merrill Lynch investment bank.

The cuts, outlined in a document given to top executives, are part of a larger strategy by chief executive Brian Moynihan -- who took over in 2010 -- to make the bank more efficient and reduce its exposure to risk, the Journal said.

Most of the cuts are expected to come from the consumer banking division, as the bank plans to close 200 branches, on top of 178 shut down in 2011, the newspaper said, citing an individual familiar with the document.

The restructuring plan has already seen Bank of America shed several international credit card units, insurance units and other holdings, dropping its total assets by seven percent to some $2.16 trillion, the Journal said.


Source: AFP Global Edition

[behappyalways]

Bank of America vs. Bank of America on China Property Bubble
http://blogs.wsj.com/chinarealtime/2014 ... ty-bubble/

[winston]

not vested

One of My Most Unusual Buy Recommendations Ever By Dr. Steve Sjuggerud
Monday, June 15, 2015

The recommendation I'm talking about is for government-issued "TARP" warrants on Bank of America stock.

In short, it's a unique way for you to make money if shares of Bank of America go up.

Let me explain…

Shares of financial companies have been going up lately. But investors aren't interested. I explained this in a recent True Wealth Market Intelligence Sentiment Monitor update…

Years after the financial crisis, investors still want nothing to do with financial stocks. Today's [sentiment] reading of 20% is one of the most negative in history. Sentiment this bad could point out an opportunity. When investors flee a sector en masse, it tends to point toward a bottom, not a top. When investors are all doing the same thing, they're usually wrong.

Interestingly, financial stocks have begun a silent uptrend in recent months. They've underperformed the overall stock market since the beginning of 2015… but they've beaten U.S. stocks since bottoming at the end of January. Negative sentiment, combined with an uptrend, makes financial stocks a sector that interests us right now.

Bank of America, in particular, is cheap… It's trading at a discount to book value and at a forward price-to-earnings (P/E) ratio of 11. It's hated. And it's in a solid uptrend. This is exactly what I want to see in a stock.

Now, you can set yourself up to profit from Bank of America shares heading higher by buying the stock… or you can set yourself up to profit even more by buying the TARP warrants.

TARP warrants are one of the most profitable recommendations I have made in my career.

If you're not familiar with TARP warrants, let me briefly give you the backstory…

TARP stands for the Troubled Asset Relief Program. The U.S. Congress passed TARP to basically save the U.S. financial system during the 2008 crisis.

The U.S. Treasury used TARP money to inject cash into hundreds of banks around the country. The Treasury didn't give out cash for free… The government made an investment in each and every bank that received TARP money. And it received preferred stock that paid a high rate of interest.

As a kicker, the government also received stock "warrants" that were potentially worth billions of dollars. This was a way to sweeten the deal for the Treasury.

But the government doesn't really want to be invested in private businesses like banks.

So in a move that most investors were never aware took place – the government sold off the bank "warrants" that it owned to the public.

Most people don't know it. But today, you can buy these TARP warrants just like any stock – through your brokerage account. And importantly, the right warrants offer incredible upside.

For example, in True Wealth Systems, we've used TARP warrants to lock in several double-digit and triple-digit winners over the past few years.

Now, we have another opportunity for big gains through the Bank of America TARP warrants.

The Bank of America TARP warrants that I like (NYSE: BAC-WTA) have a strike price of $13.30. That means you have the right to buy Bank of America shares for $13.30 anytime between now and expiration – January 16, 2019.

Bank of America stock is around $17.50 as I write, so it's "in the money" – trading at $4.20 above the "strike" price of the warrants.

The current price of these warrants, as I write, is $6.19. So the "option premium" is only about $2.

Now, here's why these warrants can make you more money than just buying the stock…

You see, your initial investment is only $6.19 – the warrant cost. That makes your initial cost less than half of one Bank of America share. And that means that if Bank of America does well, your upside is even greater with these warrants than if you had just bought the stock.

For example, if Bank of America shares are at $26 when the TARP warrants expire three and a half years from now, then you will double your money on the TARP warrants if you buy today. If you bought the stock instead of the TARP warrants, then your return would be less than 50% – a big difference.

I recommend checking out the Bank of America "A" TARP warrants today. Keep in mind, the symbol for these warrants is different among different brokerage firms. On Yahoo Finance, the symbol is BAC-WTA.

TARP warrants are one of the most unusual – and profitable – investment ideas I've uncovered in my two decades in this business. Don't miss the opportunity.

Source: Daily Wealth