Worst case dilution has already been factored into the price, these banks are trading at a fraction of tangible book value, BAC will roar like a lion tomorrow and go up another $1 IMHO.
"BAC will roar like a lion tomorrow and go up another $1 IMHO"
you will be dumping your shares like all your long brthern tmw. when you see this thing tank 3-4 dollars..that is if you own more than 100 shares
I beg to differ. No one would have imagined this kind of potential dilution plus the government contributions that could mean even more dilution and government involvement later. We know how well the government can run anything. Just not a good combination. That is JMHO!
not short, but where are they going to get the money (1/2 their current mkt cap)? as in tomorrow to quell the slide??
HONG KONG, May 6 (Reuters) - U.S. equity market futures extended losses on Wednesday while the yen gained after a source told Reuters that Bank of America (BAC.N) has been deemed to need $34 billion more in capital.
That would mean the bank has capital needs worth almost half its current market cap of $69.4 billion.
S&P 500 futures SPc1 were down 1 percent compared with a 0.3 percent fall before the news broke.