5 Comments

  1. Eddie W
    January 3, 2014 @ 5:34 am

    Citigroup consolidated 10:1 earlier this year. It was $ 4, consolidated to become $ 40 and now $ 25. Another 40% decrease. BAC is no exception, after it’s consolidation, in another 5 years, it will bite the dust.

  2. Linus
    January 3, 2014 @ 6:17 am

    I personally believe Bank of America will be worth $ 40 or $ 50 in five years. Now is the perfect time to purchase this stock and make a killing, and I am doing so. I want to have atleast 2000 shares and watch it rise to about $ 70.000 in the next five years. However, the market is going to go back to below 9000 in the next year, so you could see a BAC as low as $ 3, which is fantastic buying opportunity. I have already started purchasing shares at todays low prices.

  3. sam b
    January 3, 2014 @ 6:25 am

    Bank of America was the most successful retail bank in the country until the made the mistake of acquiring the money pit investment bank Merrill Lynch around the time of the financial crisis. They’re still paying for that mistake now, and it will take a while to put it behind them. Eventually, they will though, and BAC will be a successful retail bank once again. In the meantime, BAC and most of the financial sector are still in disarray. For how long, nobody knows.

    Part of Warren Buffett’s deal with BAC involved warrants for 700 million shares at around $ 7 each. One can infer that he believes the stock will rise well above $ 7 in the long term, netting him billions when he activates the warrants. I think he knows what he’s doing, and BAC is more likely to see brighter days than not.

  4. JoeyV
    January 3, 2014 @ 7:00 am

    So Linus….Why don’t you tell us why you think that BAC is going up to $ 40 or $ 50/share…
    Do you have any clue what you are doing or this is just foolish bravado talk?

    I’m selling those December 2016 40 calls cheap. What are you paying for them?

    BAC is a wreck. There is virtually no chance this stock is going anywhere near $ 40 or $ 50/share. How can anybody think that this company will be a $ 600B company in 4 or 5 years from the wreckage that it is now? There’s not even a path there.

    EDit: BTW – If you believed the stock ws going to $ 40 or $ 50 in 4-5 years and you knew anything about what you were doing, you would be buying calls as that growth rate is a neaar 0 probability according to the implied vol of the most OTM call option out there. If the shares are cheap, the options would be vastly cheaper. This is one of those, eiethr you don’t believe that or you do believe it and you are too stupid to play it correctly. In either case, the advice isn’t worth squat.

  5. underexposed...
    January 3, 2014 @ 7:02 am

    hehehe…I love the comment that Citigroup Inc bounced back from what was it $ 5 and now is $ 25…Did you get a piece of that action…hehehe Look at your wallet see any moths, feel any lighter. The fact is it was $ 4.50 …. true and it did jump to $ 45.00 on May 6 …on a 10:1 reverse split and now has successfully fought its way down to $ 23.00 in 7 months…losing about 50% of its value

    my guess BAC is headed back to its low in 2009 of about $ 3.00…it was bailed out back then…”too big to fail” was the slogan then You have to wonder if that philosophy holds now.

    “Bank of America today announced that it reached its goal of doubling the number of Merrill Edge Financial Solutions Advisors (FSAs) to more than 1,000 nationwide by the end of 2011. With the addition of more than 280 new hires across Texas and Florida, more than 1,200 FSAs are now working in banking centers throughout the United States or in the Merrill Edge Advisory Center.

    The hires are part of Bank of America’s overall commitment to enhance the solutions and guidance it offers to Preferred customers – those with investable assets of $ 50,000 to $ 250,000. These FSAs will provide the financial solutions and guidance customers need to help them manage their banking and investment needs and stay in better control of their finances. ” http://tmx.quotemedia.com/article.php?newsid=46287272&qm_symbol=BAC:US

    Kinda wonder what paper the will try to flog off on those in their target market (the knowledgeable investor?) . Dark days are coming for the US economy….for us too in Canada because our economy is so locked into them. A lot of talk in Canada about looking for broader customer range…we are far to tied to the USA economy to be healthy it seems.

    Already a lot of stocks are approaching 2008-2009 lows and the real blows are yet to come…Think November has been bad….wait for January.