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Politics : Welcome to Slider's Dugout

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To: SliderOnTheBlack who wrote (10957)	7/29/2008 9:41:16 AM
From: SargeK	Read Replies (1) of 50101

Slider, Your buddy InAVanDownByTheRiver posted a message on Investor Village BAC that the stock my drop to $20. investorvillage.com My response: Re: A second chance coming InaVan: >>>>to reload under 20. Maybe even 15 or 10. <<<<< LOL!! Man I know you are DEAD WRONG, but I wish you were right because if you are I WILL make a ton of money. With SAFETY of the $2.56 dividend now assured by growing earnings, I could increase my holdings with only moderate risk. and use little or no cash to do it. Scenario: A drop to $20 provides a 12.8% yield (buy 1k) A drop to $15 provides a 17.1% yield (buy 2k) A drop to $10 provides a $25.6% yield (buy 4k) With margin interest at 7.75%, the profit margin of dividend income over interest expense is a prospect one could only dream about. Comment: BAC is forming a firm bottom in the $28 to $34 range that will very quickly become a technical base of support and the trend is up and I strongly believe it wil continue regardless of what happens to the other financials. Expect a pop today of 1 to 3 points. FWIW Hint of the day: study the yield chart provided at uspublicpolicy.com Good luck to all, SargeK

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