BAC 2 dollars, JPM 21 bucks

I see them visiting those prices in 12 months. They are pretty overpriced and you can only do enron accounting for so long before it blows up in your face.

 

that's an interesting thought... bac the new c??

 

I'm curious if you ever calculated it's tangible book value, either one. BAC's is like 10 times $2, and JPM is at about book right now. I don't think fundamentals would be on your side for that one. But their texas ratio is about 1, so maybe, but they should have been bankrupt by now if that was true (BAC, not JPM had that problem).

 

King

I agree with you. BAC is one of the heavier players when the option arms start resetting

 

I vote 19 for JPM because that's where I sold it last time. :sigh:

I'm pretty good at picking tops and bottoms. I just may not be the right way at those tops and bottoms...

 

Don't worry. Obama & Geintner will bail them out. They have the best lobbyists on the Hill.

 

aint book value the value of those mortgage notes?

so wont it drop when people walk away?

 

Valuations

BAC has a current Value of $18.43 per share.

C has a current Value of $4.79 per share.

JPM has a current Value of $33.88 per share.

JPM is the big overvalued one IMO and these are my calculations but I guess it depends on what model your using. Hope this helps.

 

Close enough. I think the point has been made. No way BAC would go even back to 7. It's just too stupid.

 

Where do you get this book value..

If the book value is the value of the outstanding mortgage notes.

How can you trust it? The more defaults the lower this book value as assets drop in value.