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

To: djia101362 who wrote (1348)	10/28/2009 7:58:26 PM
From: Qualified Opinion	Respond to of 4366

Bank of America's Freedom: At What Cost? thestreet.com

To: djia101362 who wrote (1348)	10/28/2009 8:04:00 PM
From: Keith Feral	Respond to of 4366

Good to see GS at $20. Regional banks seems to be priced for perfection, whereas JPM and BAC are trading at the biggest discounts to normalized earnings. I get to $3 for BAC and $8 for JPM.

To: djia101362 who wrote (1348)	10/29/2009 12:33:23 PM
From: Keith Feral	Respond to of 4366

The more I look at the consensus on normalized earnings, the cheaper JPM and BAC look. Everyone is getting on the same page, except Bove who seems to have completely lost his mind. If JPM is going to be paying a 30% dividend on $8 in normalized earnings, that's going to lead to an annual dividend of $2.40. That's more than their earnings for all of 2009. BAC is still lagging the restructuring process with big charges from MER just beginning to wind down. Absent those CDS charges for last quarter, they would have had a nice profit. So, they will get back to breakeven or a small profit this quarter, and hopefully the NCO's will begin to decline in Q1 so they can produce a clean operating profit. Now, BAC just needs to come clean on how much capital they need to raise over the next couple quarters to pay back TARP. They could easily generate $6 billion in excess capital as their 1 time charges from MER disappear and reserves continue to fall.