Bank of America - How Can a $45 Billion Dollar Loss Rally a Stock?
-=DirtBag®
Posted on 01 July 2011 by by: Todd Horwitz
Since it purchased Country Wide Mortgage three years ago, financial
Giant Bank of America has lost over $38 billion dollars on the deal, and
has many billions more to settle before this one is over.
The company also admitted that in addition to money it has already lost,
that it faces another $7 billion in potential fines from varies state
agencies where the company used “robo signers.”
You would think that for a stock that has been getting pounded for a
year that this would be the final nail in the coffin.
Quite the opposite, the stock rallied 3% on Wednesday!
When you talk about market expectations, there could not be a better
example than BOA and Countrywide.
In this case, Wall Street thought that the loss could be over $50
billion so a potential loss of only $ 45 billion is like making money!
DraggonFodder
Hey DB, you know as well as I, that the worse the news, the higher the
stock value. Your last sentence is the real deal, the media spins it
like they actually made money and folks believe. Personally, I think
the PPT owns almost all stock by now and the value will only go down
if they are willing to sell at a lower price. Say a company has 100
million share and the ppt owns 40 mil of them and the company has 51
mil, so there is only 8 mil float and if they try to sell, the ppt
buys so the price don't go down. OK, I don't know what I am talking
about but it was worth a shot.
DraggonFodder
-=DirtBag®
This world has gotten kooky.
Blash
WELCOME TO M.I.S.
ausound
news:20c9ccf4-df9f-4813...@u26g2000vby.googlegroups.com:
> On Jul 1, 7:00 pm, -=DirtBag® <n...@nospam.com> wrote:
>> How Can a $45 Billion Dollar Loss Rally a Stock?
>> Posted on 01 July 2011 by by: Todd Horwitz
>>
>> Since it purchased Country Wide Mortgage three years ago, financial
>> Giant Bank of America has lost over $38 billion dollars on the deal,
>> ..... In this case, Wall Street thought that the loss could be over
>> $50 billion so a potential loss of only $ 45 billion is like making
>> money!
>
> Hey DB, you know as well as I, that the worse the news, the higher the
> stock value. Your last sentence is the real deal, the media spins it
> like they actually made money and folks believe. Personally, I think
> the PPT owns almost all stock by now and the value will only go down
> if they are willing to sell at a lower price. Say a company has 100
> million share and the ppt owns 40 mil of them and the company has 51
> mil, so there is only 8 mil float and if they try to sell, the ppt
> buys so the price don't go down. OK, I don't know what I am talking
> about but it was worth a shot.
>
> DraggonFodder
PPT doesn't buy stock, it uses the leverage of futures
now, who owns a shitload of stock are pension funds..it's their YOB MENG
now as far as institutions, these 4 own 12.81% of all shares outstanding
STATE STREET CORPORATION 459,140,568 4.53 6,120,343,771 Mar 31, 2011
VANGUARD GROUP, INC. (THE) 367,462,397 3.63 4,898,273,752 Mar 31, 2011
BlackRock Institutional Trust Company, N.A. 258,068,893 2.55
3,440,058,343 Mar 31, 2011 JP MORGAN CHASE & COMPANY 212,406,485 2.10
2,831,378,445
Jared
> DraggonFodder<commo...@gmail.com> wrote in
> news:20c9ccf4-df9f-4813...@u26g2000vby.googlegroups.com:
>
Something I would like to know:
If I buy shares in a Vanguard S&P 500 fund, is that counted as part of
Vanguard's "institutional ownership" of Apple?
What about if I hold shares in "street name" at a discount broker? Does
that too get counted as that broker's "institutional ownership" of the
stocks?
--
Jared
Charlie Perrin
>Something I would like to know:
>What about if I hold shares in "street name" at a discount broker? Does
>that too get counted as that broker's "institutional ownership" of the
>stocks?
Stocks held in street name are held by the Depository Trust Company
unless they are in a margin account.
I have never seen DTC reported as a 5% owner but I suspect they would
be if they added up all the holdings in all the cash accounts.
Dr Tormento
> You would think that for a stock that has been getting pounded for a
> year that this would be the final nail in the coffin.
They still have $629 billion cash on their balance sheet. This is
minor spillage.