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cosmostein (85.39)

The "After the Fact" I told you so.

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May 07, 2009 – Comments (5) | RELATED TICKERS: BBX , TSFG , BAC

We have seen the "bad" banks more then double in value since early March, yet it seems that the masses only seem to clammor that this rally won't last after a day when they don't do well?

Even after today's bump in the road: 

Citigroup (C)

March 5th      $1.02 per share

May 7th        $3.81 per share

Bank of America (BAC)

March 5th      $3.17 per share

May 7th         $13.51 per share

Even the regional banks which have been labeled the "devil" by the all seeing all knowing...

Bank Atlantic (BBX)

March 5th      $0.67 per share

May 7th         $3.59 per share

The South Financial Group (TSFG)

March 5th      $0.69 per share

May 7th        $1.85 per share

Huntington Bancshare  (HBAN)

March 5th     $1.02 per share

May 7th        $3.89 per share

And these are the "Bad" banks, not even taking UBS, Chase or the other big boys into the equation.

I keep hearing the bubble is going to burst and I should take my chips and run, but had I listened to these guys who seem to only be sticking their heads out on days where the DOW is down >100 points I would have a lot less scratch in my pocket.

 

 

 

 

 

 

5 Comments – Post Your Own

#1) On May 07, 2009 at 7:07 PM, ozzfan1317 (< 20) wrote:

I would cash in any gains you have on BOA the most likely way for them to raise capital would dilute your holdings badly.

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#2) On May 07, 2009 at 8:21 PM, awallejr (79.48) wrote:

BoA does surprise me.  I sold June10 BOA $7puts  and am sitting on pure profit now.  Would take a major crash for the stock for me to lose money on the play (stock would need to fall under$6). I thought it was pricey at $10.

Now C is still at a great price to accumulate off of.  Yeah there will be dilution from the preferred conversion, but I'd rather have diluted shares that should show positive eps growth, than nondiluted shares in a bankrupt company. I still think selling the June 4 puts work.

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#3) On May 08, 2009 at 12:06 AM, ralphmachio (< 20) wrote:

They're sayin' black is white, and because your makin money off it, your startin to believe it. Who was it that stuck a feather in his hat and called it macaroni? What passes for reality these days is getting pretty weak, but that's why we are at this point in history, is it not?

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#4) On May 08, 2009 at 1:03 AM, JibJabs (53.18) wrote:

Worse scenarios were priced into the stocks. Disclosure brought some investors back into the fold. 

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#5) On May 08, 2009 at 10:08 AM, cosmostein (85.39) wrote:

My thoughts are that since I have used my entire TFSA yearly alotment on big banks, I will leave those shares in there for the long haul, I am in no rush for the cash.

However the shares sitting in my standard account are starting to give me an itchy selling finger, although I think holding for a year or even six months at March/09 prices may still be of benefit. 

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