BAC 2 dollars, JPM 21 bucks

Quote from noob_trad3r:

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.
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Just subtract loan loss reserves from equity, and derive what's called tangible book value. Book value is still in the high $10's.
 
Quote from bwolinsky:

Just subtract loan loss reserves from equity, and derive what's called tangible book value. Book value is still in the high $10's.
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Except loan losses will continue to grow.

Tangible book value is going to get eroded over time just like an options contract.

Anyone going long on these ticker symbols is asking for trouble. My price targets will stay because I see further erosion as time passes. More and more foreclosures and more folks who are capable of paying but not willing to service loans on homes that are worth half what they paid.


You can put lipstick on a pig but you still have a pig.
 
Quote from KINGOFSHORTS:

Except loan losses will continue to grow.

Tangible book value is going to get eroded over time just like an options contract.

Anyone going long on these ticker symbols is asking for trouble. My price targets will stay because I see further erosion as time passes. More and more foreclosures and more folks who are capable of paying but not willing to service loans on homes that are worth half what they paid.


You can put lipstick on a pig but you still have a pig.
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Whatever. B of A lost all of their investment on Merrill Lynch. They are working on eliminating those "toxic, overleveraged" assets from the balance sheet that they inherited from Merrill, and I don't find them anywhere but in the footnotes. It seems they are a lot smaller than they were from the beginning of this year.
 
BAC chart is similar to C, found key support at $15. It dropped more than 20%. I see the huge drop as part of the media playing political stuff because of TARP.

I see BAC has potential to go higher from here. I try very hard to close my ears when people are extremely negative on CNBC, FOX business. It's not easy buy when they basicly tell you you sell everything and dig a whole and hide is when we buy.

I purcahsed BAC twice yesterday, at $15.13 and $14.88 AH, purchased C at about $4. Woow, it was a good thing.

Another stock that I REALLY like is CREE. It's one of the BEST stocks. I will open another thread for this one.
 
BAC Tanking 7% I'm taking up some call options on this sucker. It's pierced the bottom deviation on the Bollinger Bands. A true sign of being oversold.
 
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