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

To: Spekulatius who wrote (44693)	9/30/2011 10:49:32 AM
From: E_K_S	Respond to of 78683

Thank you for the explanation on how reserve losses are calculated. In BAC's case, the numbers are so big that it is hard for me to quantify the risk/reward opportunity. Berkowitz has bet so much on this one and is already down 50%. I do see both your and Berkowitz's argument on the huge cash flow this franchise generates. This will continue for month's and years. If they decide to spin off Countrywide in a BK and dump all the garbage into that entity, BAC will take off. I am not too sure if that was the plan all along but it would be a brilliant move if they could pull it off. It turns out that my MBNA credit card is owned by BAC. They earn a little on every one of those transactions too. I will continue to watch but have no plans to nibble on any of these bank stocks (at least not yet). FWIW, I did buy a few more shares of MHR today and looking to close out my FRD (putting proceeds into MHR). Maybe it is the end of quarter adjustments, but there are just not any buyers to bid up prices. I am noticing a lot more day and swing traders. Maybe the activity will be different once the new quarter is underway. EKS