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  • yk121976 yk121976 Mar 22, 2009 9:50 AM Flag

    A FEW THINGS YOU SHOULD KNOW ABOUT BAC

    1) BAC's book value is $11. - WRONG. BAC value is 6.09 cause that is the price it's being traded. My realtor can tell me my house is woth a million dollars, if I can't sell it for that price I don't care what he says.

    2) Insider buying has gone up in the last couple of months. - RIGHT "Insiders" bought at January and Feb when the stock was $3, $4 and $5. I didn't see any recent transaction in the last few weeks nor anyone buying it at the price it is now. How does that help your point ?

    3) Lewis said BAC could pay Gov't money back by end of this year. - He will just about say anything - this is from that article: "He also said he'd like for the bank to make $30 billion in a year before he exits." - and now let's look at facts: back in 4th quarter 2007 and before this whole mess happend "For the fourth quarter, net income was $5.26 billion, or $1.16 per share, as compared to $3.57 billion, or 88 cents a share, in the year-ago period" http://www.investorguide.com/stock-archives.cgi?date=012307

    So when the stock was trading at the 40's the bank was making $5.26 billion which would be $20.04 billion a year. Now with unemployment, real estate going down, the government printing money like it was monopoly, you are telling me that you will make $7.5 billion a quarter?? I don't know but something tells me not to trust statements like that.

    I am not shorting BAC, I am long losing money, but I also am realistic and every time someone speaks and makes blanket announcements like "We are going to pay back 65 billion this year" I do a little bit of research and laught at those statements, maybe you are impressed by them .. good for you.

    Hope to hear some good news Monday regarding toxic assests or M2M rule, or anything to give this some life.

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    • WRONG. BAC value is 6.09 cause that is the price it's being traded. My realtor can tell me my house is woth a million dollars, if I can't sell it for that price I don't care what he says.
      .
      Look up the definition of book value. It is not the same as market value. Yes, BAC is trading at market value which is what people will pay for it today. That may change tomorrow.
      http://www.investorwords.com/549/book_value.html

    • "1) BAC's book value is $11. - WRONG. BAC value is 6.09 cause that is the price it's being traded.".....

      Book value is 11 not 6.09. The important point is potential appretation of nearly 100% from this level, not what it is trading at today.

      " So when the stock was trading at the 40's the bank was making $5.26 billion which would be $20.04 billion a year. Now with unemployment, real estate going down, the government printing money like it was monopoly, you are telling me that you will make $7.5 billion a quarter?? I don't know but something tells me not to trust statements like that."....

      Your not considering the $10 bil+ a year that MER and CW are good for. The billion dollar question is, are we at the bottom for real-estate, unemployment and gov cash injection; or do we still have a long way to go. I think we are closer to the battom than media wants you to believe. We all have to wait and see and there is lies the risk/reward.

      "I am not shorting BAC, I am long losing money, but I also am realistic and every time someone speaks and makes blanket announcements like "We are going to pay back 65 billion this year" I do a little bit of research and laught at those statements, maybe you are impressed by them .. good for you."....
      The pay back for BAC is $45B not $65B. I would say CEO is closer to right than wrong, when he says he will pay back in a year or less. Lieing or exagerating that type of info in todays environment is suicide.

      I continue to trade BAC and simultaneously building a long-term position.

    • You forget that they cut all the div and yield, this will save them a lot of money.

    • Book value and stock price are not the same things.

    • From your previous post, it is obvious you are not long. You were the original post of "in at 3 out at 3.15". This tells me either you have a short position right now or waiting of a drop so you can buy again becuase you jumped at 3.15

      • 1 Reply to bacbacker2
      • I bought more at $4, and am still sitting on it. I never shorted stockes, and would never short a stock that is under $7, too much risk. I also am sitting on positions both on BAC ($26) and FAS($13) which I am holding. I lost A LOT of money this year, and not really proud on it. Those small in and outs is me trying to get some of my losses back.

        I wish he was right, I just look at the facts.

 
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