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BAC WS A: $3.63
As the research was too long, I uploaded it to Scribd.
Disclosure: Long BAC WS A.
BAC and BAC WS A: Much cheaper than WFC?
BAC and BAC WS A: Much Cheaper Than WFC?
BAC: $9.12 per share (market cap: $98.29 billion)
BAC WS A: $3.63
As the research was too long, I uploaded it to Scribd.
Disclosure: Long BAC WS A.
BAC and BAC WS A: Much cheaper than WFC?
BAC WS A: $3.63
As the research was too long, I uploaded it to Scribd.
Disclosure: Long BAC WS A.
BAC and BAC WS A: Much cheaper than WFC?
Tickers in the article:
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Nico.black - 7 months ago
This analysis makes more sense to me: http://thestreethub.com/wen-dou-on-bank-america-corporation-bac-until-aug-31-2012
Guruburu - 7 months ago
Nico,
Only reason the other analysis makes more sense to you is probably that you wrote it. Please keep your day job.
Only reason the other analysis makes more sense to you is probably that you wrote it. Please keep your day job.
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I am NOT an expert in bank valuation, that is for sure. But I needed some exposure for portfolio construction targets. I bought the A warrants at $3.60 and expect to generate 50 cents per year selling way out of the money naked calls on BAC common. I like the fact that the warrants are pricing in very low volatility and interest rates at this price. Even if I take an occassional loss on the short call position I think I can have my basis in the warrants down to $1-$2 on expiration so the risk reward is maybe $2 down and $15-20 up. This approach is NOT margin efficient, however.