***Official*** 2011 Stock Market Thread

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Imp

Imp

Lifer
Feb 8, 2000
18,828
184
106
Ms. DICKINSON said:
What do you guys think about BAC? It's a different beast now compare to my interest of the company a few months ago. Now it's sitting near the 52wks low of 5.12. I'm thinking of holding for 6+ months.
Appreciated.
Click to expand...

I dabbled when it was $11-$13. Big mistake. I got out with "only" a 10-15% loss.

I'd be willing to put in a small position as I do think it will rise (you valuate it for me...) eventually back to the $10+ range (out of my ass).

On the other hand, it fucked itself SO bad with Countrywide that it's still hemorrhaging money in the billions range every quarter. It's a continual problem that I'm just no longer comfortable with. I don't think they've turned a profit since the great 2008 crash thanks to the mortgage issues, maybe for the first time last quarter?

Instead, I play with C and WFC. They're relatively safer in my mind, and C has almost as much potential. It has a lot more global exposure and international operations, and at least it's turning a profit.
 
Hugo Drax

Hugo Drax

Diamond Member
Nov 20, 2011
5,647
47
91
Groupon the 21st century ZZZZ Best?

This stock is going fast its like the LNUX in the 90s

1 dollar in 12 months.
 
IHateMyJob2004

IHateMyJob2004

Lifer
Sep 29, 2004
18,656
68
91
Ms. DICKINSON said:
What do you guys think about BAC? It's a different beast now compare to my interest of the company a few months ago. Now it's sitting near the 52wks low of 5.12. I'm thinking of holding for 6+ months.
Appreciated.
Click to expand...

Why buy a lottery ticket when you can buy something better than gold. Why not just get WFC which is also down a bit.
 
L

lothar

Diamond Member
Jan 5, 2000
6,674
7
76
Ms. DICKINSON

Ms. DICKINSON

Golden Member
May 17, 2010
1,221
1
81
bit.ly
IHateMyJob2004 said:
Why buy a lottery ticket when you can buy something better than gold. Why not just get WFC which is also down a bit.
Click to expand...

I just think there's potential. Lol. Might be beginner mistake just to ponder about it.

lothar said:
Buy preferred shares if you want to bet on banks.
http://online.wsj.com/mdc/public/page/2_3024-Preferreds.html

Preferred shares in Citigroup, JPMorgan, Wells Fargo, and Bank of America are all yielding between 7-10%.
Click to expand...

Thanks.
I'll look into it and do some more research :)
 
S

snoopdoug1

Platinum Member
Jan 8, 2002
2,164
0
76
lothar said:
Buy preferred shares if you want to bet on banks.
http://online.wsj.com/mdc/public/page/2_3024-Preferreds.html

Preferred shares in Citigroup, JPMorgan, Wells Fargo, and Bank of America are all yielding between 7-10%.
Click to expand...

Whoa - i didn't know you could buy preferred shares being just an average joe. Why would you ever buy common shares if you can buy preferred shares?

If my understanding is correct, preferred share holders get better dividends and also get paid back first if the company goes under - right?
 
Z

zimu

Diamond Member
Jun 15, 2001
6,209
0
0
RIMM is flying up thanks to them announcing potentially opening up their services to apple / ios.

Wonder if it'll save them from the grave?
 
Imp

Imp

Lifer
Feb 8, 2000
18,828
184
106
zimu said:
RIMM is flying up thanks to them announcing potentially opening up their services to apple / ios.

Wonder if it'll save them from the grave?
Click to expand...

Interesting... Opens up a new and/or continuing source of revenue, but considering the $40 billion plus in cash that rivals Google, Apple and Microsoft have, I don't see how they couldn't do the same (assuming they haven't already). It does help existing RIM customers switch over from BB devices though, and should be higher margin.


Hope the rally continues and this isn't just a small blip on the way down. I'm all in - almost!
 
L

lothar

Diamond Member
Jan 5, 2000
6,674
7
76
snoopdoug1 said:
Whoa - i didn't know you could buy preferred shares being just an average joe.

Why would you ever buy common shares if you can buy preferred shares?

If my understanding is correct, preferred share holders get better dividends and also get paid back first if the company goes under - right?
Click to expand...
Average Joe people have been doing these for many years. There are ETFs that specialize in these securities that have existed for years.

The same reason why one buys common stocks over bonds. Preferred shares are in the middle of both stocks and bonds.

They don't get paid before bond holders, but they get paid before common stock holders.

Also note that the dividends in preferred shares of these banks are not regulated by the Feds.
The Fed denied BAC's common stock dividend increase request earlier this year...But yet they're still paying 7-10% dividend yield in these preferred shares and have been doing so for years.

If you're very bullish on banks and you know what what you're doing...you could also buy TARP warrants in Wells Fargo, JP Morgan, Bank of America, et al...If you're very bullish on banks and you know what what you're doing.

I'm not sure why anyone would want to buy BAC common stock given the massive dilutive effects from Preferred shares, TARP warrants, and Warren Buffett's Berkshire Hathaway's 700 million warrants with a $7.14 strike price that could make his company own 7% of BAC if fully exercised anytime within the next 10 years.
That's some massive dilution right there. Buffett got a sweet deal. BAC common stock holders? Not so much.
 
D

DaWhim

Lifer
Feb 3, 2003
12,985
1
81
lothar said:
The Fed denied BAC's common stock dividend increase request earlier this year...But yet they're still paying 7-10% dividend yield in these preferred shares and have been doing so for years.
Click to expand...

they keep paying dividend to preferred shares because by law, iirc, if they stop paying, they will have to pay all it back + interests.
 
T

The-Noid

Diamond Member
Nov 16, 2005
3,117
4
76
DaWhim said:
they keep paying dividend to preferred shares because by law, iirc, if they stop paying, they will have to pay all it back + interests.
Click to expand...

Only if it is cumulative preferred which they all aren't.

Most times by covenant companies can't pay dividends to common before paying the preferreds.

I hate to link to wikipedia but my brain has no index and google found it first.

http://en.wikipedia.org/wiki/Preferred_stock

On just a completely off-topic subject there are very rarely laws in securities. A few regulations, common sense and covenants handle everything. Hence the 100-200-500 or in some case 1000 page prospectuses.
 
JTsyo

JTsyo

Lifer
Nov 18, 2007
12,066
1,158
126
hmm looks like I made a mistake. Stupid bank stopped allowing online orders so I couldn't place a stop at .30 think it's at .26 at closing.

Should I keep it and see what happens during the day tomorrow or just off load it for whatever it's worth? When would you expect they'll pull the stock from the market?
 
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Pliablemoose

Pliablemoose

Lifer
Oct 11, 1999
25,195
0
56
The iPhone is now 1 approval away from being available on China's Unicon, the world's 3rd largest cell network...
 
Arachnotronic

Arachnotronic

Lifer
Mar 10, 2006
11,715
2,012
126
Sold 100 INTC @ 24.50. Pretty happy.

Also, glad it worked out for you JTsyo!!!!

Wow, my portfolio is now in the green on every position.
 
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KB

KB

Diamond Member
Nov 8, 1999
5,406
389
126
This market is tough to follow. I had most of my momey out of the market and put maybe 40% back in yesterday, so I lucked out on todays big rally, but its making me bipolar. I guarantee we will be hearing about Italy and Greece again as their borrowing costs keep rising. I will probebly follow this rally til May and get out.
 
Imp

Imp

Lifer
Feb 8, 2000
18,828
184
106
KB said:
This market is tough to follow. I had most of my momey out of the market and put maybe 40% back in yesterday, so I lucked out on todays big rally, but its making me bipolar. I guarantee we will be hearing about Italy and Greece again as their borrowing costs keep rising. I will probebly follow this rally til May and get out.
Click to expand...

Personally, I'm a bit confused as to what to do now...

Once Europe is "solved" (i.e. Germany and France allow 'quantitative easing'), it's going nowhere but up. But I would bet that we have at least one more major drop to the levels seen a few days ago when "investors are reminded of Europe", as the headline goes.

Oh well, take what I can. I'm about break-even right now as I entered a bit early with some positions. Any further gains are pure profit for me...
 
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