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davejh23 (< 20)

What Happens to BAC sub-$5?

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November 29, 2011 – Comments (8) | RELATED TICKERS: BAC

Are institutional investors going to have to dump their shares as soon as tomorrow?...BAC is currently at $5.02 after-hours.  The last time BAC reached this level, it fell another 40% within the following few weeks...of course, that was the tail end of a pretty rapid descent.  Some here were arguing that BAC was a screaming deal back around $6.32.  Does anyone still believe that?

8 Comments – Post Your Own

#1) On November 29, 2011 at 5:18 PM, Teacherman1 (< 20) wrote:

I will buy under $5.00.

It will take time, but it will come back eventually.

JMO and worth exactly what I am charging for it.

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#2) On November 29, 2011 at 6:03 PM, shamapant (< 20) wrote:

I think that valuation or not, BAC will fly down...isn't under 5 considered a penny stock? Under 5 will have to show staying power, but it is a total possibility that BAC will crash, and i foresee a reverse split

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#3) On November 29, 2011 at 7:17 PM, OneLegged (< 20) wrote:

My fingers are crossed.  I have visions of Buffet in a bathtub (not a pretty sight).

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#4) On November 29, 2011 at 7:24 PM, Frankydontfailme (28.86) wrote:

The only thing that can (and will) temporarily save B of A and its stock - central schemers buying and or suggesting they will buy Mortgage Backed Securities. That being said you'd be crazy to be long BAC.

Schemers can't buy MBS until oil price drops heavily and that won't happens so soon methinks. 

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#5) On November 29, 2011 at 7:24 PM, Frankydontfailme (28.86) wrote:

The only thing that can (and will) temporarily save B of A and its stock - central schemers buying and or suggesting they will buy Mortgage Backed Securities. That being said you'd be crazy to be long BAC.

Schemers can't buy MBS until oil price drops heavily and that won't happens so soon methinks. 

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#6) On November 29, 2011 at 9:04 PM, reflector (< 20) wrote:

$6.32 is about where i started shorting BAC, i'm up about 20% so far.

to the BAC longs who loaned me your shares so i could short BAC, THANK YOU!

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#7) On November 30, 2011 at 10:57 AM, awallejr (33.36) wrote:

I suspect BAC will have to do what C did, namely dilute the shares with offerings to raise capital and then do a reverse stock split.  This bank won't collapse since the Fed won't let it, but the stockholders will wind up taking it on the chin.  BAC is still sitting on a lot of toxic loans that are just unsellable.

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#8) On November 30, 2011 at 5:30 PM, memoandstitch (< 20) wrote:

It seems the Fed chickened out and decided to hold BAC above $5.  The timing couldn't have been more suspicious.

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