There's not enough short in the stock. However, the return for the risk at this level just isn't there. With the stock up 25% in two weeks, it's time to take profits.
Based on current economic conditions I'd say $25 next year ($2/sh x 2.5 PE), but with improvements to the economy, changes in interest rates & optimism about the stock, I'm expecting $30. By the end of 2016, mid to high $30's.
When BAC returns to its normal 12.5 PE, then $2/sh earning next year will take it to $25, but it'll run ahead of that as the business environment gets better so doubling by the end of next year (16 months) isn't out of the question. With those earnings, they could easily pay a $0.50 dividend & still not pay out as much as the other banks (it would need to be around $0.75 to match theirs.)
Not "dying", the percentages are slightly down & given that 50% of Americans now depend on the government it's a wonder that percentage isn't worse. More importantly, Gallup has found that 70% of the population identifies with Republican ideals. So, a rose by any other name...
Individual homeowners already got bailed out with mortgage relief imposed by the government, which banks paid for. There won't be any winnable civil suits even if they do come up.
So in normal times, that's what we should expect. Half of the earnings were taken by the Feds/DOJ & BAC was allowed by the overlords to pay a $0.05 dividend. So, the allowed dividend was about 25% of earnings. After the extortion clears up next year & BAC makes $0.50 the dividend should at least double, maybe even stay at 25% & go up to $0.12 .
In the last four years, that's how much Obama & his DOJ puppet have taken from this bank - about $6 for each share that we shareholders could've had. Thank goodness this should be finished.
That means the DOJ will extort political capital from the Ferguson situation the same way they've been extorting financial capital from BAC - just Chicago politics.
Previously, it was 45%. So, instead of being paid almost $1 per year we're getting twenty cents... Unnecessary regulation & the Democratic-controlled government shaking out the industry for money are taking four times what we get!
I bought HCN years ago when everyone else was bailing & have a 660% return, about half of that from dividends.
I had the same problem with Firefox. I did a google search & found an uninstaller that removed everything from the registry. It hides lots of places so you have to be thorough.
The Fed getting behind the eight-ball & having to raise rates suddenly should now be off the table. Any additional selling is due to irrational fear & should be a great opportunity to buy.
There was previously a head & shoulders pattern that took IBB down to $243. Earnings have been good & now it looks like we could have an inverse head & shoulders with the left coming around July 7, the head July 17 & the right might be forming now. This would take IBB back up to around $262 in the short term.
Won't happen. As a result of the "Fed put", every money manager should be fully hedged to the downside as a result of cheap options. Even most ordinary investors should be hedged. I am. My positions are set up to sustain up to a 10% market decline on their own without losing that much. I've bought cheap put spreads that I pay for with calls. If the market falls 10% - 20%, I'll actually make more than my portfolio would lose due to vol expansion. It's too hard to call market turns, hedge & stay invested.
In the short term. Shoulder late June, head early July & shoulder mid-July. Price target should be around $244. There should be some good support around $246 - $247 that built up in mid-June but the volume has been up, so the buyers who make up that support may be getting out because of all the yellin' about PE's. So I'm kind of cautious about getting in just yet.
The 41 cents is key because that's what to expect from normal operations. Also BAC noted that capital ration were better & that expenses were down.
Crushed estimates, which is what counts (along with outlook), but litigation costs brought the total down. As soon as the Democrats & their blood-sucking minion lawyers are run out of power BAC will really ramp up.