Mayor Quimby - 06 July 2009 10:39 AM

I like FAZ.

Me2!

willrob - 06 July 2009 11:55 AM

It looks like all the banks are down this morning still reeling from the jobs numbers last Thursday, but BAC got an extra kick in the balls from Credit Suisse, who lowered their target to 12, due to what they claim will be a 7B loss from various segments.

BAC had a 6B loss last Q and still made money. Hence the buying opportunity. This Q ML is thought to have outperformed last Q.

I of course have a vested interest on this subject.

BAC is full of you-know-what.  They are booking their ‘mysterious’ losses over time instead of all at once which is what they should be doing.  They will continue to need to raise billions of capital which people like Eric are going to give them.  The underlying gets diluted and is worth less and less and less with each coming quarter.  Any profits they make go directly into their pockets (banks pay over 70% of their profits to themselves - the highest sector % out there) and they throw a few nickels of chump change to the actual OWNERS of the company…MAYBE.

I would rather invest in chicken feed in Namibia no offense to any Namibians here.

Mayor Quimby - 06 July 2009 12:26 PM

BAC is full of you-know-what.  They are booking their ‘mysterious’ losses over time instead of all at once which is what they should be doing.  They will continue to need to raise billions of capital which people like Eric are going to give them.  The underlying gets diluted and is worth less and less and less with each coming quarter.  Any profits they make go directly into their pockets (banks pay over 70% of their profits to themselves - the highest sector % out there) and they throw a few nickels of chump change to the actual OWNERS of the company…MAYBE.

I would rather invest in chicken feed in Namibia no offense to any Namibians here.

Everybody is booking losses over time since that’s the ruling in the accounting standards. That ruling resulted in a $22B windfall for BAC.

Nobody likes the poor spanks but can you point toward a sector that is more likely to double or tipple in value over the next 24 months? No?

The same Credit Suesse analyst responsible for todays $12 target was proven wrong last quarter. This drop for BAC may be a controlled drop for larger funds to buy in before earnings.

willrob - 06 July 2009 02:58 PM

This drop for BAC may be a controlled drop for larger funds to buy in before earnings.

That’s what I’m banking on. 

Accounting has no relevance.  BAC? SOLD to you my friend.  Bid 6.78 for 200,000…...

Love FAZ when GS turns off the buyback button.

Eric Landstrom - 06 July 2009 02:20 PM

Mayor Quimby - 06 July 2009 12:26 PM

BAC is full of you-know-what.  They are booking their ‘mysterious’ losses over time instead of all at once which is what they should be doing.  They will continue to need to raise billions of capital which people like Eric are going to give them.  The underlying gets diluted and is worth less and less and less with each coming quarter.  Any profits they make go directly into their pockets (banks pay over 70% of their profits to themselves - the highest sector % out there) and they throw a few nickels of chump change to the actual OWNERS of the company…MAYBE.

I would rather invest in chicken feed in Namibia no offense to any Namibians here.

Everybody is booking losses over time since that’s the ruling in the accounting standards. That ruling resulted in a $22B windfall for BAC.

Nobody likes the poor spanks but can you point toward a sector that is more likely to double or tipple in value over the next 24 months? No?

How you get double or triple is beyond me.  They’re not supposed to book losses over time Eric - they’re supposed to show them immediately.  They are being given a pass here (which is utter BS).  The banking sector still has over a trillion in undeclared losses by the more conservative estimates.  And the stress tests were a sham.  We’ve already blown past their worst-case scenario.  I’m not saying the banks won’t succeed in fooling people but hey….GM is trading a $1 on the pink sheets and shareholders don’t even OWN THE COMPANY!!!!  Stock prices aren’t indicative of where a company should be trading but where it is trading.  BAC SHOULD be a ZERO.

Instead of thinking of why it could or should double or triple, ask why you’d invest your hard-earned money in a company that:

a: steals from taxpayers (literally)
b: lies to shareholders and breaks the fiduciary trust (Merrill merger)
c: lies to the general public and misstates earnings (books the POTENTIAL to buy back debt as earnings but never books losses thanks to the SEC allowing it to make its own rules).
d: barely pays a dividend
e: is one of the biggest culprits of the housing bubble (Countrywide) and is indicative of everything that is wrong with Wall Street today.

They are the BAD GUYS.  I don’t give a damn if the stock is going to quadruple in a week.  There’s simply NO WAY I’M going to help the fraud, theft and malfeasance continue.  You shouldn’t either.  All you’re doing is supporting the wrong side of things imo.  And remember….the stock may double but that doesn’t mean you were on the right side of the trade.  It just means the taxpayers got screwed some more (expect another round of pathetic stimulus).  I will cheer if FAZ does what I think it will - as in banging pots and pans and opening up that special bottle of single malt I’ve been saving…

Yeah, I think the good Mayor Quimby is right on BAC.  There are plenty of other stocks to make money from—companies that won’t send you to the shower.  I too am tired of the shenanigans and the thievery. 

I put WAMU right up there, lead by the miscreant Kerry Killinger, who was able to keep 10’s of millions of compensation while presiding over the most irresponsible lending behavior in my backyard.  Let’s not forget, the economy collapse begins and ends with the hijinks of the banksters.

PCAOB (Public Company Accounting Oversight Board) board members are appointed by the SEC. The Board is charged with protecting investors by “promoting informative, fair, and independent audit reports. 

The FASB (Financial Accounting Standards Board)allows companies to list impaired assets like mortgage securities in their books as “other comprehensive income.” This improves operating income by allowing companies to report smaller loss amounts on their financials.

If companies have assets with strong cash flows that can be estimated, then those cash flows would be the basis for estimating appropriate value in the corresponding toxic (illiquid) market.

For example, the mark-to-market rule is being tossed overboard so banking gnomes can set fantasy values on trashy tranches that switched from being assets to debits, two years ago.  This is because many of these loans are NON-PERFORMING assets which means, they are losses since no one is paying any interest or principal on them.

Slight of hand, Smoke and Mirrors - All in the name of investor protection and fiduciary responsibility. 

Barney Frank looks a lot like Dan Dorfman….....

AAPL Straddle is is the best bet right here.

BAC = AIG

Mayor Quimby - 06 July 2009 07:22 PM

Eric Landstrom - 06 July 2009 02:20 PM

Mayor Quimby - 06 July 2009 12:26 PM

BAC is full of you-know-what.  They are booking their ‘mysterious’ losses over time instead of all at once which is what they should be doing.  They will continue to need to raise billions of capital which people like Eric are going to give them.  The underlying gets diluted and is worth less and less and less with each coming quarter.  Any profits they make go directly into their pockets (banks pay over 70% of their profits to themselves - the highest sector % out there) and they throw a few nickels of chump change to the actual OWNERS of the company…MAYBE.

I would rather invest in chicken feed in Namibia no offense to any Namibians here.

Everybody is booking losses over time since that’s the ruling in the accounting standards. That ruling resulted in a $22B windfall for BAC.

Nobody likes the poor spanks but can you point toward a sector that is more likely to double or tipple in value over the next 24 months? No?

How you get double or triple is beyond me.  They’re not supposed to book losses over time Eric - they’re supposed to show them immediately.  They are being given a pass here (which is utter BS).  The banking sector still has over a trillion in undeclared losses by the more conservative estimates.  And the stress tests were a sham.  We’ve already blown past their worst-case scenario.  I’m not saying the banks won’t succeed in fooling people but hey….GM is trading a $1 on the pink sheets and shareholders don’t even OWN THE COMPANY!!!!  Stock prices aren’t indicative of where a company should be trading but where it is trading.  BAC SHOULD be a ZERO.

Instead of thinking of why it could or should double or triple, ask why you’d invest your hard-earned money in a company that:

a: steals from taxpayers (literally)
b: lies to shareholders and breaks the fiduciary trust (Merrill merger)
c: lies to the general public and misstates earnings (books the POTENTIAL to buy back debt as earnings but never books losses thanks to the SEC allowing it to make its own rules).
d: barely pays a dividend
e: is one of the biggest culprits of the housing bubble (Countrywide) and is indicative of everything that is wrong with Wall Street today.

They are the BAD GUYS.  I don’t give a damn if the stock is going to quadruple in a week.  There’s simply NO WAY I’M going to help the fraud, theft and malfeasance continue.  You shouldn’t either.  All you’re doing is supporting the wrong side of things imo.  And remember….the stock may double but that doesn’t mean you were on the right side of the trade.  It just means the taxpayers got screwed some more (expect another round of pathetic stimulus).  I will cheer if FAZ does what I think it will - as in banging pots and pans and opening up that special bottle of single malt I’ve been saving…

On my block within the past couple of weeks two households bought new S classes. Every household except my real estate broker next door neighbor is doing some kind of home improvement project and my next door neighbor who isn’t moving walls and pouring slabs just shelled out of pocket the bill for his son-in-law’s kidney transplant. I live in a bubble in the land of milk and honey and think of nothing but puppies and bunnies. However,

1) The gubbament has made money on the TRAP money given to BAC and C. In other words, Spank On didn’t steal jack.

2) I’m comfortable with Merrill merger and I’m a shareholder. What is the merger to you, a non-shareholder?

3) Accounting is done by rule of law and standards and not to the desires, hopes, or preferences of bears. For crying out loud we use a faith-based money system and you’re concerned about accounting standards? Life is better if you just giggle every time somebody accepts a fractional reserve currency for goods and services. Join me in the surrealism of it all and laugh and if that doesn’t work, then try the cubist perspective. 

4) The Gubbament limited the divident. If you don’t like the common then step right up and pick up BAC-PD, BAC-PE, BAC-PH, BAC-PI, BAC-PJ, BAC-PL not to mention the goofy Cap Trust series.

5) BAC picked up 25% of the mortgage business in this country with Country Wide which it paid a sum of $4B with the blessings/urging of the Gubbament. Fanny and Freddy are also stinkers but the Gubbament already owns them (as do I).

Mike, this is Wall Street: at the end of the day performance is measured by returns and quality of work is quantified. And at the end of the day when 2012 comes, BAC is the earnings monster. After credit provisions, Spank on should see $70B in earnings in 2012. Less $6B for preferred dividends ($2.5B once TRAP is paid off) and taxes at 35% and Spank On should kick it with $40B, $10B above the $30B.

Such as it is BAC has a limited downside because it cannot go out of business. The Gubbament, without saying as much, wrote a guarantee on TRAP infested Banks. The sign blinks once in a while but the financial sector will give us better returns than any other sector over the next three years. If the financials cannot work themselves out of this mess by 2012, then we’ll have stagflation. But make no mistake about it: the financials must rally in order for any kind of growth to occur. Loans must by made in order to speed up commerce.

I never thought I would say this: but I do agree with Eric on this one!
I’ll be +50% in financials by the end of the week.

Tuesday

R4         146.17
  midpoint   144.80
R3       143.43
  midpoint   142.06
R2       140.69
  midpoint   140.17
R1       139.65
  midpoint   138.80
PP       137.95
  midpoint   137.43
S1       136.91
  midpoint   136.06
S2       135.21
  midpoint   133.84
S3       132.47
  midpoint   131.10
S4       129.73

Eric Landstrom - 07 July 2009 01:39 AM

On my block within the past couple of weeks two households bought new S classes. Every household except my real estate broker next door neighbor is doing some kind of home improvement project and my next door neighbor who isn’t moving walls and pouring slabs just shelled out of pocket the bill for his son-in-law’s kidney transplant. I live in a bubble in the land of milk and honey and think of nothing but puppies and bunnies. However,

1) The gubbament has made money on the TRAP money given to BAC and C. In other words, Spank On didn’t steal jack.

2) I’m comfortable with Merrill merger and I’m a shareholder. What is the merger to you, a non-shareholder?

3) Accounting is done by rule of law and standards and not to the desires, hopes, or preferences of bears. For crying out loud we use a faith-based money system and you’re concerned about accounting standards? Life is better if you just giggle every time somebody accepts a fractional reserve currency for goods and services. Join me in the surrealism of it all and laugh and if that doesn’t work, then try the cubist perspective. 

4) The Gubbament limited the divident. If you don’t like the common then step right up and pick up BAC-PD, BAC-PE, BAC-PH, BAC-PI, BAC-PJ, BAC-PL not to mention the goofy Cap Trust series.

5) BAC picked up 25% of the mortgage business in this country with Country Wide which it paid a sum of $4B with the blessings/urging of the Gubbament. Fanny and Freddy are also stinkers but the Gubbament already owns them (as do I).

Mike, this is Wall Street: at the end of the day performance is measured by returns and quality of work is quantified. And at the end of the day when 2012 comes, BAC is the earnings monster. After credit provisions, Spank on should see $70B in earnings in 2012. Less $6B for preferred dividends ($2.5B once TRAP is paid off) and taxes at 35% and Spank On should kick it with $40B, $10B above the $30B.

Such as it is BAC has a limited downside because it cannot go out of business. The Gubbament, without saying as much, wrote a guarantee on TRAP infested Banks. The sign blinks once in a while but the financial sector will give us better returns than any other sector over the next three years. If the financials cannot work themselves out of this mess by 2012, then we’ll have stagflation. But make no mistake about it: the financials must rally in order for any kind of growth to occur. Loans must by made in order to speed up commerce.

1. The gubbamint (FEDERAL RESERVE) has taken tons of collateral off of their books OUTSIDE OF TARP and given them freshly minted CASH in return at almost ZERO PERCENT to the tune of HUNDREDS OF BILLIONS.  When I go to a bank for a loan, they charge me over FIVE PERCENT at best - even WITH REAL collateral.  This is THEFT as we are all on the hook for it.  As for TARP, no one knew BAC would be able to successfully raise capital.
2. BAC shareholders en masse were lied to re: Merrill merger.  The big shareholders STILL want Lewis’ blood.  My friends on the street tell me the merger was an unmitigated disaster.  Everyone knows the big problem with BAC is now Merrill.  This is fraud and was forcefully perpetrated by Paulson, Bernanke etc.
3. STOP WITH THIS FAITH-BASED NONSENSE.  I don’t what you’re talking about.  Fractional reserve banking and monetary policy are not fantasies.  The first problem is that we got off of a metal standard.  Money is now debt and holds no intrinsic value.  But WE STILL HAVE LAWS THAT MUST BE OBEYED.  The first sign of a sinking ship is when laws apply differently to different groups of people.  Those on WS have been granted exceptions to:

a: trade commodities (shouldn’t be allowed to as RETAIL BANKS which is what they are - and remember futures markets were originally designed to hedge positions NOT TO BID UP OIL PRICES EVERY TIME A HURRICANE HITS FLORIDA)
b: HIDE ASSETS ON THEIR BALANCE SHEETS - we still have NO IDEA what’s on their books.  You wanna bet your cash that it ‘aint too bad?  go ahead.
c: Lever up.  Leverage raises prices.  It is so hilarious that all of these bulls including many here on AFB simply do not understand this basic principle.  ANYTHING you’ve bought in the past 15 or so years has been TOO EXPENSIVE due to leverage.  Deleveraging is a return to the normal price trends (non-leveraged) and should be embraced.  If I pay $100 for a stock, personally, I’d like to know it’s really worth $100 IN CASH not because a hundred funds bought it on 8:1 margin.

4. If the gvmt limited the dividend - WHY OH WHY would you want to own it?!  You can buy preferred shares all over the place of great well-run companies with cash and NO FRAUD.  Whatever money banks DO make, they pay shareholders chump change vs. what they make.

5. What mortgage business?!  Housing is cratering and continues to do so.  Whatever BAC is making off of Countrywide, THEY ARE LOSING A TON MORE on their hidden secret balance sheet.