Tuesday, September 6, 2011

Update on BAC, and Grandpa Buffett

Yes, since Korea and Grandpa Buffett purchased their shares of Bank of America (BAC) they have both lost money. Let's assume your are Buffet leach and purchased those shares right at market open for $9.35 a share (SOMEONE DID).  Well I hope you are crying since its only worth $6.99 a share at close today. Thats a 30% loss in less than 2 weeks, congratulations.

Just as a quick update there are still long-term problems with BAC's operations and balance sheet. I think with certain strategic investors and the recent news of re-organizing the company the long-term may be a little rosier, but the company is still overvalued. Also, ousting Krawcheck was really only an investor relations move. They still have to address the real personnel problems, cut management and employs and trim even more fat.

Let's see a positive financial quarter and earn some money then talk about BAC as an investment prospect.

My advice: continue to stay away.

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