Bank of America (BAC)

[Ray The Money Man]

Since my last post I have been moving in and out of BAC with 1/2 of my position. 7% - 10% profits at a wack. This has been an easy one.

[Airelon]

I'm holding onto this one for years. It's in a DRIP portfolio.

Although I have been known to trade BAC on occasion.

If I would have had a brain in my head, I would have bought it on a trade the second the "naked short" ban hit the wire ...

[Fredledingue]

Yeah, there has been a lot of good jumps from bottoms to take profits with.
Unfortunately, I'm unable to trade short term. All the stoks I own, I believe should grow 30 to 100% in one or two years, so selling after 7 or 10% at this time is difficlt for me eventhought I know it's the winning attitude in a downbeat market.
I always wanna play to Big Turnaround. LOL

[JDC-Investing]

Originally Posted by HitHard17

Also, in the long run, BAC has strong exposure to consumer debt. As jobs decline, unemployment and foreclosures skyrocket, credit card default will likely be rampant. This, along with the hangover from the mortgate debacle will likely weigh heavily on banks like BAC. ...

Im not feeling a great vibe from any financial investment this year. Right now lots of jobs are "in limbo" just waiting to be deleted. Lots or mortgages, loans, and credit debts, which banks rely on, are on the verge of being inrelaible sources of income. Also, with the presidency hanging in wait, lets say the troops overseas are brought back, and those in the reserves will need jobs when their job is done "over there". The job market and the economy, i believe, is awaiting a truly "savage" era. I think that what we are seeing now is just the tip of the iceberg. Companies that market and sell "real" products across the oceans or the oil industry within the US borders is the direction I am headed. I dont think even Bank of America is safe from what lies ahead. This new era is going to give birth to a new species of financial institutions and the ways we are used to doing in regards to finances are going to change dramatically. Fear is the main reason why some species of animals arent extinct. I embrace fear, but also utilize it.

[Airelon]

Actually, at this point, I think that Bank of America (BAC) is probably the single safest bet among all of the financials.

I'm having a hard time keeping track of all of the acquisitions that Lewis has made over the last year. This is getting unreal.

Which translates into pure earnings. Heck, although some people are saying that he paid too much for MER? I think he got MER for a song. Think about it.

I'm nearly dancing in the streets on this deal. We get none of MER's toxic debt which got sold 6 weeks ago (Do you really think that's a coincidence? That Thain wasn't considering selling then?), and we get all the sweet parts of MER. Especially that high wealth asset management.

Shareholders - Investors ... are about one thing. Earnings. Not the stock price. That's like - number 3 on the list - for investors on dividend stocks. 1) Earnings, 2) Dividends / DRIP program, 3) Cost Basis

Now it's just a matter of ... in what manner does Lewis want to take his earnings? He can sell off bits and pieces ... or keep all the sweetest parts.

I'm long term BAC. Heck, I had to revise my profit target from $60? To $100 with this deal. And need we even discuss how many more shares we're going to grab on the 26th through the DRIP program, for a better DCA to our cost basis - with the stock price depressed?

This is fantastic on nearly ever front!

[Fredledingue]

BAC is probably the one of the strongest who will survive (only the strongest will survive).
But call it "safe" ia an overstatement. BAC is a bank and like any bank they could suddenly get a skeleton out of the closet. I don't think anything could hurt BAC that badly but if we are not lucky, ...we are very unlucky.

Back in Nov 2007 I bought MS, because someone told me that they had little exposure to subprime mortgage which was true. But their exposure to CDO's was huge and this very few poeple knew. I tried to sell them at $68.90 hen it traded abovce $70. The order was neve filled. You know the rest...