Buy and Sell Signals, and Other Market Perspectives Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives

SPY 671.91

0.0%

Nov 14 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: GROUND ZERO™ who wrote (40672)	11/20/2012 3:47:09 PM
From: Keith Feral	Read Replies (1) of 218856

I'm back to a full position in the banks today. Still keeping some powder dry to add to other positions, but the discounts between C and BAC relative to other money center banks like JPM and WFC is only going to shrink next year. Regardless of what happens, BAC and C will get the greenlight to start paying normal dividends again next year and start buying back stock. We'd have to start a whole new credit collapse for that to happen. It's not going to start between now and March, so they will finally catch up to the other banks in terms of return of capital. Both banks now have more than enough capital to get them through the last credit crunch without further capital raise. Theoretically, BAC has enough capital so that even if they didn't ever make a profit again, they wouldn't have to raise capital. The worst thing that could happen would be they had to start setting aside more loan losses in a couple years. They still have enough reserves to get by another couple years worth of loan losses. It really makes me wonder about the significance of HP's writeoffs the past few quarters. $16 billion down the tubes, but that should be about it. It's not like they are going to be making these kinds of writeoffs into the future.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next