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Lacking Confidence



January 21, 2009 – Comments (4) | RELATED TICKERS: BAC

It was reported today by (hat tip to ocregister) Reuters that Bank of America CEO Ken Lewis bought 200,000 shares of BAC common stock. One year ago I might have thought that signals confidence by management.

Today, for absolutely no reason but my own discust with the banking industry, I just wonder if Ken Lewis got a loan from BAC to buy the stock with. Right or wrong, I don't want the stock.

4 Comments – Post Your Own

#1) On January 21, 2009 at 10:35 PM, awallejr (83.78) wrote:

Nah he used his bonus money to buy a stock he pummeled into the ground with his recklessness and lack of due diligence.  In TEN years he may prove "right" with his strategic moves, but at the moment he destroyed pretty much every one of his stockholders in the process.

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#2) On January 21, 2009 at 10:38 PM, rd80 (98.50) wrote:

Yep, not even interested in risking CAPS points either way on BAC.

Lewis could be blowing smoke.  Or he could be just as wrong about his own bank as he was about Countrywide and Merrill.

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#3) On January 22, 2009 at 12:37 AM, cbwang888 (25.84) wrote:

He was gambling BAC by acquiring CFC and ML. Buying 200K shares of BAC is just his another bet.

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#4) On January 22, 2009 at 4:16 AM, uclayoda87 (29.17) wrote:

200k shares is only a little over a million dollars, which is 0.001 Billion dollars or 0.000001 Trillion dollars, which is practically nothing at all, especially with the soon to be worthless dollar.

I could not resist betting a small amount of money yesterday hoping for a dead cat bounce.  I doubt I will hold it very long, unless they back out of the deal with Merrill.

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