Where do YOU see Bank of America go from here?

[deadbroke]

Quote from Churchill:

I have to respectfully disagree with most of the posters on this thread. Short term we may see ups and downs, but 2-5 years from now this stock should be up significantly.

Even with the writedowns, they are still making money. Bad loans will slowly but surely make its way off the books. Less competition than before. Swallowing two major competitors. I will go out on a limb and predict that 5-7 years from now, BAC will take out its all time highs. If you can sit and be patient, then I believe this will work for you. Plus there is the current government pressure to put blame on banks that is also holding this down.

I bought at $4 (missed the lows under $3) and held to $19.60. (That was very close to the highs at that point.) I then started buying on the way down at $16 (Again, in hindsight, I should have waited longer, but no one is perfect). My average share price now is $13.87, so I am under water at this point. I am not worried. In fact I am overweight BAC. My prediction is it will break $20 within 2 years and $40 within 5 years.

If you really think BAC is going to zero, then I assume you also think the entire US economy will either collapse or be on the brink of collapse. BAC has over 10% of all mortages/loans in the entire US, if I am not mistaken. Take a look at a 30 year BAC chart. We are at roughly 1993 levels. You are getting to buy in at prices of 20 years ago. Plus BAC can easily make $2 per year (50 cents per quarter, which is low balling) and at 10X multiple (which is low balling again) this is a $20 stock.

I think the above is reasonable. But I am sure I will hear otherwise.

>>>>> I think the above is reasonable. But I am sure I will hear otherwise. <<<<<<


Agree, very reasonable and actually commendable for someone at ET to go against the HERD. The HERD, as always extrapolates any continuing move to infinity.

 

[deadbroke]

Quote from Churchill:

I have to respectfully disagree with most of the posters on this thread. Short term we may see ups and downs, but 2-5 years from now this stock should be up significantly.

Even with the writedowns, they are still making money. Bad loans will slowly but surely make its way off the books. Less competition than before. Swallowing two major competitors. I will go out on a limb and predict that 5-7 years from now, BAC will take out its all time highs. If you can sit and be patient, then I believe this will work for you. Plus there is the current government pressure to put blame on banks that is also holding this down.

I bought at $4 (missed the lows under $3) and held to $19.60. (That was very close to the highs at that point.) I then started buying on the way down at $16 (Again, in hindsight, I should have waited longer, but no one is perfect). My average share price now is $13.87, so I am under water at this point. I am not worried. In fact I am overweight BAC. My prediction is it will break $20 within 2 years and $40 within 5 years.

If you really think BAC is going to zero, then I assume you also think the entire US economy will either collapse or be on the brink of collapse. BAC has over 10% of all mortages/loans in the entire US, if I am not mistaken. Take a look at a 30 year BAC chart. We are at roughly 1993 levels. You are getting to buy in at prices of 20 years ago. Plus BAC can easily make $2 per year (50 cents per quarter, which is low balling) and at 10X multiple (which is low balling again) this is a $20 stock.

I think the above is reasonable. But I am sure I will hear otherwise.

here is my earlier post in this same thread (8-11-2010)



But here's something else to thnk about ....

so far everyone in this thread including me is bearish Bank of America. We need a bigger sampling, but such unanimous behaviour is not good. When eveyone at ET thinks one way, WATCH OUT.

So, here is some other thought-ing about the once lofty bank ...

if we get a nice big drop in price, which we should, but then momentum wanes and a major downtrendline is taken out and the Feb 2009 low holds firm, BUY, BUY, BUY and hold for 1000 years, even longer than Buffett or his grandchildren.

My sole reason for merely suspecting this is shown in next post

 

[deadbroke]

Quote from deadbroke:

Bank of America, monthly chart.

(note: analysis is not to be found in any book; purely my own stuff, but I've seen it work numerous times elsewhere )

a 161.8% perfect hit is not something to be taken lightly. Price then returning to 100% and reversing on yet another perfect hit, are signs one too many for me to ignore (usually at my own peril)

What's more, the a,b,c,d,e formation shown is once again not to be found in any TA book, but it is to me, most definitely the same consolidation wave - therefore when such a wave's low is used for the fibonacci grid and you get a perfect hit, that's enough for me to think that the DROP IN BAC HAS SEEN ITS LOW.

No guarantees, but a huge sign of caution to not let the crowd CROWD you.

(None of this means you should buy now, I'd say buying time would be around $3.50 to $6.00)

I will most certainly update this when we get there, because BofA has been my bank of choice for decades.




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repost from earlier in this thread .....


>>>> I'd say buying time would be around $3.50 to $6.00 .... <<<<


between $11 and $6.28 is now my range to look for a major reversal and powerful rally northbound. We've already hit $11 but the reason I picked that level is because it was a good support.

 

[deadbroke]

$22.5 to $40++ ... is the target when the major reversal occurs.

 

[deadbroke]

Balance the called rally against the backdrop of fundamental info about banks in general .....


25 bank failures in 2008

140 in 2009

157 in 2010

43 thus far in 2011


problem banks on FDIC list in 4th Q of 2010 hit 884

-------------------------------


yeah, bearish, bearish, bearish

deadbroke urges caution in any event and watch the chart ONLY. There is no other TRUTH anywhere, never was, never will be. PRICE is the only truth there is. When he says go LONG, just go with it.

 

[deadbroke]

Quote from deadbroke:

repost from earlier in this thread .....


>>>> I'd say buying time would be around $3.50 to $6.00 .... <<<<


between $11 and $6.28 is now my range to look for a major reversal and powerful rally northbound. We've already hit $11 but the reason I picked that level is because it was a good support.

 

[deadbroke]

Quote from deadbroke:

$22.5 to $40++ ... is the target when the major reversal occurs.

 

[deadbroke]

Quote from deadbroke:

Balance the called rally against the backdrop of fundamental info about banks in general .....


25 bank failures in 2008

140 in 2009

157 in 2010

43 thus far in 2011


problem banks on FDIC list in 4th Q of 2010 hit 884

-------------------------------


yeah, bearish, bearish, bearish

deadbroke urges caution in any event and watch the chart ONLY. There is no other TRUTH anywhere, never was, never will be. PRICE is the only truth there is. When he says go LONG, just go with it.

 

[BSAM]

Where do YOU see Bank of America go from here?

I hope they go bankrupt.

 

[econometrics]

it is going to $2 because some hooker told me so