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MegaEurope (22.70)

TARP warrants

Recs

10

August 27, 2011 – Comments (3) | RELATED TICKERS: GM , FFBC , HIG

Since banks have been crushed in the last few weeks, I took another look at my TARP warrant spreadsheet.  Here are my current thoughts.

Buy (expected return >8% per year)
GM-WTB
GM-WTA 
HIG-WT
LNC-WT
FFBCW
COF-WT
WTFCW

Hold (expected return 5-8% per year)
SBNYW
CMA-WT
JPM-WT
PNC-WT

Sell (expected return <5% per year)
WFSLW
TCB-W
WFC-W
BPFHW
BAC-WTA
VLY-WT
AIG-WT
C-WTA
BAC-WTB
C-WTB

Note, I actually think WFC and C are above average long term investments, just not their warrants. 

I think I'll finally pull the trigger on GM-WTB this week. My first warrant purchase.  See my previous blog on GM here: http://caps.fool.com/Blogs/gm-post-bankruptcy/572590.  Their last few quarters have been strong.

3 Comments – Post Your Own

#1) On November 06, 2011 at 1:18 AM, MegaEurope (22.70) wrote:

Buy
FFBCW
GM-WTB
GM-WTA (I own these)
PNC-WT
HIG-WT
LNC-WT
COF-WT

Hold
CMA-WT
TCB-WT
SBNYW
JPM-WT

Sell
WFC-WT
WTFCW
AIG-WT
WFSLW
BPFHW
VLY-WT
C-WTA
BAC-WTA
BAC-WTB
C-WTB  

Although I'm not a fan of their warrants at current prices, I think TCB, JPM, WFC, C, BAC and AIG common stock are above average investments.

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#2) On April 15, 2012 at 4:10 PM, MegaEurope (22.70) wrote:

Update:

Many TARP warrants have gone on huge runs.  For example BAC-WTB increased from $0.09 to $0.99, a 10 bagger.  However this is a dead cat bounce - in all likelihood these will eventually expire at $0.

Buy 
GM-WTB
GM-WTA (I don't own anymore, decided I should aim for lower volatility)
JPM-WT    
PNC-WT 
FFBCW
Bonus non-TARP warrant: F-WT

Hold
HIG-WT 
COF-WT
LNC-WT 
TCB-WT
CMA-WT

Sell
SBNYW
WTFCW 
WFC-WT
WAFDW (formerly WFSLW)
BPFHW
AIG-WT
VLY-WT
C-WTA
BAC-WTA
C-WTB
BAC-WTB 

Although I'm not a fan of their warrants at current prices, I think HIG, COF, LNC, TCB, and C common stock are above average investments.

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#3) On August 20, 2012 at 10:53 PM, MegaEurope (22.70) wrote:

Update: On average, bank stocks and warrants have declined a bit in the last few months.

Buy
PNC-WT
WFC-WT
COF-WT
GM-WTB
GM-WTA
FFBCW

Hold
HIG-WT
BAC-WTA
JPM-WT
WAFDW 
CMA-WT

Sell
AIG-WT
WTFCW
SBNYW
TCB-WT
BPFHW
VLY-WT
C-WTA
BAC-WTB
C-WTB

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