tag:blogger.com,1999:blog-3190293047729939700.post3396715714647592238..comments2023-11-02T05:09:10.845-04:00Comments on my Value Idea: Bank of America DividendsSamihttp://www.blogger.com/profile/17866240785310374236noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-3190293047729939700.post-25768496680887827112008-04-23T13:52:00.000-04:002008-04-23T13:52:00.000-04:00I am with you on that view. If you read my earlier...I am with you on that view. If you read my earlier posts, I acknowledged that returns on banking will under perform in next year due to lack of growth in revenues. I acknowledge that I have made an error when I bought banks earlier this year; I underestimated the effects of the credit cycle.<BR/><BR/>but I think that BAC have made large increases in their reserves in Q1 relative to other banks like JP Morgan and Citi. So it can fair better than the others. <BR/><BR/>I still like BAC and USB as retail bank and their management are solid as well.Samihttps://www.blogger.com/profile/17866240785310374236noreply@blogger.comtag:blogger.com,1999:blog-3190293047729939700.post-61850465990943091062008-04-23T12:19:00.000-04:002008-04-23T12:19:00.000-04:00Thank you for answering my post, Sami. One of the ...Thank you for answering my post, Sami. One of the issues I have with this position is that I strongly believe we are going to see further decline in bank earnings due to additional writedowns over the next few years. I don’t believe we are in the 7th or 8th inning as the media is reporting. The loans that are currently going through the financial system are from higher quality (although not good quality) loans. The worst of the worst loans issued in 2006 and early 2007 have not yet made their presence felt.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3190293047729939700.post-53301574739590272832008-04-22T21:22:00.000-04:002008-04-22T21:22:00.000-04:00it is a cheaper way to buy BAC. your possibilities...it is a cheaper way to buy BAC. your possibilities are as follows:<BR/>1. the deal go through you get a nice premium<BR/>2. the deal get renegotiated higher, it will only be negotiated higher not lower due to activist involvement, you also win<BR/>3. the deal do not happen the outcome here is not clear.<BR/><BR/>I think my money is on outcomes 1 or 2. Outcome 3 has a very low probability of occurring. so I think that trade has a high expected positive return. <BR/>I actually like it.Samihttps://www.blogger.com/profile/17866240785310374236noreply@blogger.comtag:blogger.com,1999:blog-3190293047729939700.post-35448593943517947012008-04-22T18:12:00.000-04:002008-04-22T18:12:00.000-04:00What are your thoughts about getting into BAC with...What are your thoughts about getting into BAC with an arbitrage position by purchasing CFC?<BR/><BR/>Thanks SamiAnonymousnoreply@blogger.com