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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: hardincap who wrote (44575)	9/26/2011 12:31:40 AM
From: Paul Senior	Respond to of 78822

BAC: I figure 10B shares at tangible bv of about $9, which is after a $2 haircut on current tangible $11/sh bv. Maybe an $80b haircut on stated bv (Bv-->$20/sh -$8/sh = $12/sh) if there's dilution or something. With stock at $6+, 50% gain (if stock trades at $9 tangible book value) in couple of years. I am a buyer ---- very, very small amounts. Just pulling numbers and relationships from my belly button (or other anatomical areas). Really, who believes BAC as to what their tangible bv is or what they or accountants say it is? Or what their liabilities, contingent or otherwise, really are? Or -- for that matter -- that I might be correct in assuming that I can evaluate the prospects for the stock on book values? SOMEBODY has got to be doing proper homework on BAC, C, AIG. (It's not me.) Somebody who is putting money on the line has got to have understood and evaluated the pros and cons. (Usually among analysts, there might be one such guy, if we are lucky.) I'm betting here on Berkowitz and his staff. On AIG and BAC and C. I'm betting on all those. Not for much, but I am in, and will try to ride these for a couple/three years.