bank of America- Going Goin Gone- short to 3.5

Discussion in 'Stocks' started by myoffices, Oct 3, 2011.

  1. With new fees in everything its only a matter of time before BofA implodes- $5 atm card fees, They also don't accept partial payments for their FHA mortgages which means a Class Action is looming soon for unfair business practices. Plus they return the payments and ding the credit of the borrowers when they do.

    They are laying off a lot of workers- which means who stays and who goes means another round of Law suits for preferential treatments.
    More foreclosures are on the rise and they have tarnished many credit records of their clients with these tactics who are going back to the money under the mattress strategy.

    Running a bank like a brokerage house is a quick way to get hit and once a bank goes out of favor its gone. The Moynihan approach is wrong for a bank and right for a brokerage firm. Im seeing a break up of all the assets where the parts are worth more than the whole. I think secretly Moynihan wants to return to Merrill Lynch and the good old elite days.

    BofA is in trouble and I smell the stench. $1,940,069 is Moynihan's pay package. at Merrill that would have been his bonus package. source Business week:
    Total Annual Cash Compensation $1,220,234
    Total Short Term Compensation $950,000
    Other Long Term Compensation $270,234
    Total Calculated Compensation $1,940,069

    He wants this to be over- so he can get a real check-
  2. BAC is not going under without a fight. Its fighting back and I smell fear. Its friday the market is down and its up for no reason. Must be traders holding it up. SI (short interest) is growing and it may be the sacrificial lamb the administration offers up. More Financing coming to the Banking industry and 40000 jobs lost in the next few months.

    There is blood in the waters. If Shorting it use protection with calls to protect the upside buy out from Vulture capital who may buy it just for the pieces. BAC risk exposure is all over the place- Major China portfolio still exists as part of their book value. They have worms in the belly for all the underlying investments they have in their portfolio- MER- CWM- and sub investment losses.

    They are about to lose 32 billion dollars in Market cap- Look at the trend line its holding here at 5.60-90 and may push to 7 short term but for how long.
  3. riddler


    If someone has over 200 grand in a business checking account or an average guy as money in a regular checking, they are protected up to 250k ?
  4. This is true so the bank assets will be protected but other major institution with banking relationships get nervous and leave to better capitalized competitors. Doesn't the limits expire this year.

    This has nothing to do with the stock price. 60 billion mkt value here at 3.00 its @ 35 billion in mkt value. Its not the small investors who carry the banks its the institutional money flowing in and out that carries their feeding tank. Michael Moore will be talking about this again.
  5. riddler


    I just sold some assets ( home) and have 225k in a checking account at money is safe?
    If it does empire, I have to divide the 225k into 3 different checking accounts at Bac ?
  6. short interest is massive on stocks and indexes around the world.

    all the rallies are short squeezes.

    wonder why we aint going down at the moment.

    mutual funds and pension funds stocks holdings are still very large.

    normally they would get out but its almost as if they have been told not to.

    once these guys start dumping every hft / algo is gonna front run the whole move down.

    1500 to 2000 points i reckon.

    i think they are holding on for qe3 from bernanke or a deal out of europe.

    they must be sweating though - time is running out.
  7. J Ski

    J Ski

    Market is a super tanker.
    To turn a super tanker,
    you begin the turn miles in advance.
    Can't remember the exact figures, and
    right now I'm too lazy to bother looking.
  8. GordonTheGekko

    GordonTheGekko Guest

    Too big to fail, too stupid to succeed.
  9. I believe that BAC has a lot of things to answer to. Its listening to the client and much of their revenue schemes will be uncovered. John Thane will have company very soon. BAC needed that $5 fee and now they don't have it they will not be able to meet earnings.

    More loans to be underwater as prices drop another 20%. BAC ate some bad stuff and its only a matter of time the ring worms start to show. They will be the sacrificial lamb. It may run to 8 short term but it will reverse thereafter when the hype dies down.
    #10     Nov 4, 2011