posted
Back in. August Calls.. 110 billion market cap 140 billion in cash. I see a share repurchase program in the near future. We will see mid $20's by August
IP: Logged |
posted
If China was smart, they would take out Bank of America for free, and then some. Instead of buying our bonds, buy BofA which has a market cap of 118 billion, but has 140 billion in cash. Now that would be something.
IP: Logged |
posted
The cash balance looks big but when compared to debt and liablilities it's tiny. Banks have to have cash so this number isn't the end of all the analysis. That being said, if they can get this mortgage crap figured out should be a good long term play.
IP: Logged |
quote:Originally posted by invester: If China was smart, they would take out Bank of America for free, and then some. Instead of buying our bonds, buy BofA which has a market cap of 118 billion, but has 140 billion in cash. Now that would be something.
Not sure that would make sense. sure you get the cash but you take on 450 million in long term debt and another trillion or so in other liabilities. you have to look deeper with bank cash balances.
IP: Logged |
quote:Originally posted by invester: If China was smart, they would take out Bank of America for free, and then some. Instead of buying our bonds, buy BofA which has a market cap of 118 billion, but has 140 billion in cash. Now that would be something.
Not sure that would make sense. sure you get the cash but you take on 450 million in long term debt and another trillion or so in other liabilities. you have to look deeper with bank cash balances.
Yes...I know you have to look deeper. Most of the bad debt has either been written off, or have loan loss reserves to more than cover. Housing is set to rebound in the 1st. quarter of 2011. In one form or another, BofA does business with 50% of America. Oh ya, and how great would it look to the Chinese that they own the bank of AMERICA. Anyway you slice BofA, its cheap. Book value of over $22, tangible book of $13. That’s not even taking into account that the yield curve is sure to steapen over the next year. This will be $25 by August. Current $12.01 Mark it.
IP: Logged |
posted
That’s not even taking into account that most other banks went bankrupt, thus not as much supply. They aslo have Merrill Lynch/Investment, one of the last great ones. Even Country Wide looks to be paying off. So for all that, they put a valuation far less than the cash they have on hand? Were starting to see a sense of normalcy, and a steep yield curve. These guys are going to print money. $25 by August.
IP: Logged |
quote:Originally posted by invester: That’s not even taking into account that most other banks went bankrupt, thus not as much supply. They aslo have Merrill Lynch/Investment, one of the last great ones. Even Country Wide looks to be paying off. So for all that, they put a valuation far less than the cash they have on hand? Were starting to see a sense of normalcy, and a steep yield curve. These guys are going to print money. $25 by August.
holy smokes, where do you see that country wide is paying off? they are costing and have already cost BofA billions! BofA would probably be at 25 or 30 if they never bought countrywide. they merrill deal is paying off but countrywide has been a huge drag still more to come. I am long too but we'll have to see how these housing lawsuits pan out first.
IP: Logged |
quote:Originally posted by invester: If China was smart, they would take out Bank of America for free, and then some. Instead of buying our bonds, buy BofA which has a market cap of 118 billion, but has 140 billion in cash. Now that would be something.
Not sure that would make sense. sure you get the cash but you take on 450 million in long term debt and another trillion or so in other liabilities. you have to look deeper with bank cash balances.
Yes...I know you have to look deeper. Most of the bad debt has either been written off, or have loan loss reserves to more than cover. Housing is set to rebound in the 1st. quarter of 2011. In one form or another, BofA does business with 50% of America. Oh ya, and how great would it look to the Chinese that they own the bank of AMERICA. Anyway you slice BofA, its cheap. Book value of over $22, tangible book of $13. That’s not even taking into account that the yield curve is sure to steapen over the next year. This will be $25 by August. Current $12.01 Mark it.
What housing recovery? There will be no housing recovery. Not for another 7 years minimum....the rate of inflation will surpass home values rise for a long while. Houses are getting cheaper by the day.
IP: Logged |
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
![[Were Up]](graemlins/wereup.gif)
![[Roll Eyes]](rolleyes.gif)
but still going strong ![[Big Grin]](biggrin.gif)
![[Wink]](wink.gif)
![[Eek!]](eek.gif)
![[Smile]](smile.gif)
