Not sure where this stock is going - what I do know is that based on a +/- 2.7% bad loan rate - they need to set asside another $60 million or so for reserves. This issue will probably cause another quarter or two of negative returns. Add to this that they are going to lose maybe $12 million in revenue due to the NSF Opt Out issue; now we have another drain on revenue. Other revenue streams are down as well. S & P thinks the value is about $11.50. My guess is that this stock will make $10 unless there some unplanned positive news which I do not see. The locations where their loans are bad will most likley stay bad, the RE market is not getting any better so there is additional drag from that, folks are not lending much so not a lot of revenue from that avenue. Just looks really negative. A lot of folks thing $16 might be a good range by the end of the year. Honestly, I do not see it. Had bought some calls but those are sinking fast and own some stock and that too is sinking fast. About all one can do now is go along for the ride and hope that it does not go to the single digits.
astute analyis cant forget the macro picture--BAC gets an upgrade and actually drops on the day, what can you expect for BXS? Might be a good buy-write candidate, otherwise stay clear unless you want to short