Shocking realization of the morning...GE Cap and BofA suck.
Here's a shocking realization that Mr. Market just seems to be realizing this morning...
GE Capital and Bank of America are a freaking mess.
Perhaps I just don't see things as clearly as the analysts out there, but I'm staying far away from both of these companies. I realize that the big profits can be made made when near dead companies are brought back to life, but GE Cap is way too much of an unknown for me to invest in General Electric despite the fact that I like some of its divisions. Call me risk averse.
Finance arm pushes down General Electric 3Q profit
The same goes for BofA. It annoys me to no end when I hear the company's biggest cheerleader Dick Bove from Rochdale Securities talk about what a great opportunity the company's stock is. Yep, he's bullish alright...just like he was when the company was trading at $50 per share, and $40 per share, and $30 per share, all the way down. How on Earth do people listen to this guy?
Bank of America is a huge steaming pile of carp. The only reason why it stands any chance of surviving is A) the redonculous yield curve that we have right now and B) government intervention (though the two can hardly be separated). The only logical reason that I can see to buy BAC is that the environment for new bank business is so favorable right now that they will be able to earn their way out of their past sins. I can actually see some merrit to that line of thought, but when there are so many awesome companies out there I just don't understand why anyone would take a chance on BAC at this level.
BofA posts $1 billion loss on consumer credit woes
Author's note, I own a small position in BofA corporate paper that I purchased at the height of the credit crunch. Believing that the government will continue to prop this company up is a lot different than believing that equity shareholders will be rewarded going forward though.