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<p>[QUOTE=&quot;Cloudsweeper99, post: 1333323, member: 3011&quot;]Well, gold is down 16% and silver down 42% too, but you continue to claim they are risk free.&nbsp; For anyone who cares, below is our exchange regarding BAC.</p><p><br /></p><p>I currently do not own any bank stock, but I&#039;m looking at the group. I don&#039;t want to leave fatima with the idea that there is no risk, but the report of the death of banks has been greatly exaggerated. It is impossible to have a capitalist system without a banking sector to support it. </p><p><br /></p><p>Read more: <a href="http://www.cointalk.com/t190568-8/#ixzz1hlounqEz" class="internalLink ProxyLink" data-proxy-href="http://www.cointalk.com/t190568-8/#ixzz1hlounqEz">http://www.cointalk.com/t190568-8/#ixzz1hlounqEz</a></p><p><br /></p><p>Originally Posted by fatima&nbsp; </p><p>The number is meaningless without knowing what they owe on what. It&#039;s certainly not flowing to shareholders as they are being routed as we speak.</p><p>To a value investor, it may be a signal to buy. To a technician, it may be a signal to short. To folks who don&#039;t know anything about investing, price = value. I don&#039;t know what will happen in the future, but BofA is a cash rich company with a positive cash flow and a sinking stock price. There are opportunities there for people wise enough to look for them. But as is always the case with investing, there is no penalty for inaction, and there are always chicken littles. </p><p><br /></p><p><br /></p><p>Read more: <a href="http://www.cointalk.com/t190568-8/#ixzz1hlmlGreH" class="internalLink ProxyLink" data-proxy-href="http://www.cointalk.com/t190568-8/#ixzz1hlmlGreH">http://www.cointalk.com/t190568-8/#ixzz1hlmlGreH</a></p><p>&nbsp;Originally Posted by fatima&nbsp; </p><p>BAC has two lawsuits filed against them (AIG, State of NY) for about $20B alleging numerous types of fraud committed by this bank. If so, their balance sheets are meaningless. The SEC now also being investigated covering up much of this sort of activity for the last 20 years by illegally destroying documents.</p><p>With Warren Buffett&#039;s investment in and endorsement of BofA today, I guess we can put to rest your incorrect theories about the bank. The market has a way of crushing incorrect theories with cold hard reality. </p><p><br /></p><p><br /></p><p>Read more: <a href="http://www.cointalk.com/t190568-9/#ixzz1hln8Vdnx" class="internalLink ProxyLink" data-proxy-href="http://www.cointalk.com/t190568-9/#ixzz1hln8Vdnx">http://www.cointalk.com/t190568-9/#ixzz1hln8Vdnx</a></p><p>&nbsp;Originally Posted by fatima&nbsp; </p><p>Hmm. It means the bank was lying about needing the money. They are paying loan shark rates to Buffett. No sensible bank would pay him what they are paying unless they were desperate. Did you even bother to look at the terms? A healthy bank, like the one you claimed BofA was, doesn&#039;t just hand over that many preferred shares to a private individual unless they had to. They just gained another master. I think it confirms what I am saying. </p><p><br /></p><p>Buffett also violated his own tried and true investing advice in this deal so obviously there is more here than meets the eye. The DNC convention where it&#039;s expected that Obama will be nominated again, is going to be held literrally across the street from BoFA&#039;s HQ. How would it look for Obama to be standing in the shadow of a boarded up 60 story bank skyscraper? (There is already one like this down the street that Wachovia built, being rented in part by Duke Energy, which BTW is footing the bill for the DNC.) Buffett is a close adivsor of Obama&#039;s.</p><p>Well, you&#039;re wrong again. Buffett called BofA. BofA didn&#039;t approach Buffett asking for money. 6% on preferred is far below what GE and GS paid Buffett for their preferred issues, so one can infer that BofA is far more sound than those companies were when Buffett invested. And the warrants were also above yesterday&#039;s price and could raise additional money for BofA at a price above what you said was too high. With informed investors throwing money at BofA, it is obvious that the low price far understates the true value of the company. </p><p><br /></p><p>So this is total confirmation of your error in analysis of BofA, and the price is already well above the level at which you trashed the stock even though the general market is down.</p><p><br /></p><p>Case closed. LOL. </p><p><br /></p><p>Read more: <a href="http://www.cointalk.com/t190568-9/#ixzz1hlnNMkdb" class="internalLink ProxyLink" data-proxy-href="http://www.cointalk.com/t190568-9/#ixzz1hlnNMkdb">http://www.cointalk.com/t190568-9/#ixzz1hlnNMkdb</a>[/QUOTE]</p><p><br /></p>

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