Is it realistic to think that BAC is going to trade sideways
I 've got in @12.25 and only my concerning for now is whether the price is the bottom or not. I thought it was. Now, I still think the same and it'll only go up shortly, after the consolidation,IMO. After all, it's time to buy, my friends.
BAC is currently earning $5 bn a quarter if you were to remove the extraordinary reserves for mortgage settlement issues. They are now fully reserved for everything except the AG settlement -- and they may even have enough tucked away to partially cover this one. That settlement will happen this summer. With any kind of stabilization in housing prices -- and it's my opinion we're essentially there now --, then we have a company earning $2 per share. So we might be a lot closer to a recovery in share price than the cassandras would have you think. The mbs putback issue is GONE. With no fraud (and this is what the successor issue is all about) the case for putback disappears. For some reason the financial press and perhaps even some of the analysts don't get it. Someone is going to wake up at some point. The stock is ridiculously underpriced and is poised like a sling shot.
The preceding post makes an interesting point. The financial press and possibly some of the analysts don't get the significance of the Good Friday ruling in the Los Angeles Federal Court. So YOU need to spell it out for them. The mbs cases are DEAD. There is no successor issue, so no fraud. $47 billion in potential liabilities have just gone away, poof.