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Non-Tech : Bank of America -- Ignore unavailable to you. Want to Upgrade?

To: Sr K who wrote (1334)	10/27/2009 12:19:23 PM
From: Keith Feral	Respond to of 4366

I confused the PE with the market cap from the Yahoo page. (44 and 29). Whatever the new sharecount might be after the last capital raise to buy Barclay's asset mgmt, BAC's interest was diluted from 49% to 35% on that deal. So, they are probably closer to $10 billion, not accounting for the appreciation of their shares since that time. Maybe $12 billion now. I'd love to see BAC sell half their shares in Q1 to contribute to their capital raise. That would leave them with a big profit, on top of the other deals that will close next year. If Citi is being forced to sell 51% stakes in core divisions like Smith Barney, I can't imagine why BAC would not be forced to take some profits against BLK as they continue to wind down their position in Columbia asset mgmt and First Republic. All of those investments would generate profits for the bank and reduce their exposure as too big to fail. It doesn't serve their long term interests to be the biggest commercial bank, investment bank, credit card, mortgage banker, and private equity banker. They should look for an exit on BLK to sell half now, with a multi year agreement to sell the rest of the shares.