1. institutions are dumping BAC in droves... that tells you they know something. If this was all overblown, the institutions would not be jumping out of BAC the way they have the past two days. This is after all BAC!
2. heavy volume shorting this morning. Same pattern as yesterday. A very bullish signal.
3. THIS BANK HAS TROUBLE!! Countrywide was a terrible, terrible mortgage company, guys. I know people who used to work there. They would give a mortgage to a 18 year old kid if he had a 700 credit score. No income verification necessary!! The fact that they suspended foreclosures in all 50 states before this litigation news came to light tells you they are f***ed! BAC is all automated and their systems suck. They've got trouble and they know it. Why else would they halt the foreclosures like that?
I'm sure eventually BAC will rebound, but with institutions dumping this stock, look for more capitulation Monday. This stock could easily see $8 a share within a few weeks.
IF YOU ARE LONG, GET OUT AND GET SHORT! This stock has NO immediate upside. NONE!
All your reasoning is old 2008 and made bac a $13 dollar stock. Name me one good, real, provable Oct 2010 fact that justified this $1 slide.
It's just paperwork. Like Ceo said yesterday, we're the same company we were yesterday. Not one person came back at him with what ablut this or what about that. All that lack of fact and evidense was left for the ignorant.
Earnings will be higher in 4th Q with this delay. Alot less loss by paying 3 months of interest and property taxes than unloading the house at a loss. Hire a rental management company to rent the houses out. Or put a group together to do it.
And buy back shares with the loan loss reserves!
As if this is all just surfacing 2 weeks before the elections. And just as Big Ben needs backing to start QE2.