Since the financial crisis, jumbo mortgage market was shut off. But now banks are opening it up under HARP and collecting like $800 origination fee that could mean huge profit in the coming quarters. Very good chance that dividend would be increased and buyback of shares given current huge discount from book value. Buy now before this news gets reflected in the stock prices. 2014 target price $25+. In 2015 time-frame, 1,5 times book value or $30+ is quite possible. Buy now and hold for two years.
Sentiment: Strong Buy
It looks like mortgage jumbo refi under HARP becoming popular, means big origination fee for banks - earlier banks were reluctant to do this but lending practices are a little more plentiful. BAC could report billions of dollars worth of fee (typically they collect like $800 per loan application). Next quarter big EPS just because of this alone.
Sentiment: Strong Buy
Banks manipulating currency markets, energy markets, Libor rates, engage in insider trading, and stocks - it is just a culture. Bank stocks are going no where until honesty comes back.
Apple is finally in the bull phase that may last for a few years. Here are the catalysts:
1. China Mobile deal to add $3 in EPS.
2. New products in 2014 may include: iWatch, iTV, iPhone Large, iPad Large.
3. Cloud and other services may complement products. May aggressively go after PayPal.
4. Share repurchase and dividend may be increased.
5. Gross margins may stabilize or even increase a little.
I hope to sell AAPL at $1,000 in 2015.
BAC is still selling at 70% of book value four years after the financial meltdown? If Fed tapers, interest rate goes up, bank spread and profits go up, so why not stock is moving up? BAC needs to cut down costs and increase dividend.
Read the article "Stock market on track to hit 18,000 by early 2014" - do Google search.
Cost reduction plan is a good move. The current market will flush out the weaker companies. Given demand for fertilizer will keep increasing in tye long-term, it makrs sense to keep buying as it gies diwn in the short-term. Waiting is made easier by dividend yield.
Number one priority for Moynihan is to bring down cost-structure and second priority is to increase dividend. If he does that, stock will be 25.
Looks like manipulation - DIS has a collection of first-rate properties and their animated movies and games are blockbusters - their deal with Netflix bodes well. Their piece parts are worth more than DIS. The stock can't go over 70 - very surprising because overall market is going up. By early 2014, this stock would easily go over 80.
Moynihan needs to cut headcount more aggressively - reports are that bank is overstaffed. Need a 30,000 staff cut to raise return on equity. Per employee numbers such as revenues and profits are the lowest in the industry. Cut, cut, cut!
Stock is stuck even when overall market is going up - this is the perfect time for AAPL to do aggressive buyback.
BAC could easily go over 16 soon but to go over 20 next year, need more cost cuts. Per employee stats of BAC lag behind other major banks.
A 8-10% revenue decline is very high - some strength now is temporary, it will go down more. PE is a function of growth and if they have very low to some negative growth, can't justify a PE of more than 8. The lower guidance means big uncertainty which would not clear up until next six months so there is no catalyst for this to go up. It will decline to $18 and then drift around to pass time until it's become clear if revenue decline is temporary or it's more structural. Chambers has been CEO for too long - CSCO desperately requires new more dynamic management team. If Chambers steps aside, CSCO could go up.
If Chambers does not resign, it's only because of his self-interest and he is not thinking about what's happening to the company. Company has been in doldrums for way too long and it's amazing that BoD still has faith in Chambers, an aging dinosaur.