lol...go ahead short it..I dare you
Just like the CFC aquisition, no matter how many times Lewis said deal was happening shorts kept saying it wouldn't
How many time has Lewis said that dividend was safe???
The tide has turned my friend. There is no way this will not touch $30 soon. Their is no way they wont raise dividend - what better way is there to punish shorts. After that the shorts may bring it down below $25 one more time before the October earnings maybe on a bad news and maybe because that is how the game is played.
With the new morgage business, when the dust settles, BAC will cross $75. That may be 2 years away.
That is NOT the point. The point is that you cannot directly compare the EPS of BAC and JPM, nor can you directly compare the share price as some do. Ratios, like p/e and such you can make comparisons, but not per share data.
That is earnings per share. The earnings have already been normalized to the amount of shares out.
On Valuation - They are giving JPM a fair value P/E of 14 and BAC a P/E fair value of P/E of 9...
I don't know why JPM should really have high growth forecasts than BAC...
JPM is using a lower peak to trough housing decline in their analyses and thus BAC is more conservative.
JPM has plenty of derivatives exposure....
BAC is not being treated fairly IMO compared to JPM...
I don't think that they will raise dividend this year ... unless they feel very good about the future ... If they raise the dividend, even by a penny, the stock's ready to hit $30.
Earning estimation this quarter for banks is a risky business ... all these Harvard graduate highly paid analysts are gonna flunk this time in estimating.
Not entirely true. You must also look at retained earnings. Without retained earnings they couldn't continue paying out more than current earnings.
Also, Fed rules require banks to get permission from the Feds if they have to tap retained earnings going back more than two years.