 |
|
|
BAC is looking worse than ever. BAC's |
|
|
financials are not looking good. |
|
|
Released on Thursday, September 15, 2011, 10:30 PM ET
Pittsburgh, PA (SpeculatingStocks) - Bank of America (NYSE: BAC) is looking worse than ever. With articles being splattered all over the WSJ, it’s no wonder the stock has trended down this month, let alone the entire year and things are not looking up.
Moynihan thinks he will be able to cut costs by laying off 30,000 workers, now whether or not he is attempting to save the company remains in question, but he himself stated it was to jump start profits, explicitly by increasing the gross margin.
Does this work? Well yes it can, but it can also cause a huge loss in customer base and profits in the long and possibly short run. Why? Because in the economy of today, the public and that includes investors does not like to see another company –especially one as big as Bank of America—making layoffs. Moynihan thinks he can sway investors, we believe he will sway the stock—into a greater hole.
BAC’s financials don’t seem to be showing support for any long positions either. In the last quarter, they reported a total Net Loss of $8.8 Billion, representing a diluted reduction of $0.90 per share—and yet they still paid a dividend of $0.01 per share, with an average of 10 Billion shares outstanding, just another $100 Million… no big deal.
Bank of America currently runs a total debt to asset ratio of 0.89, it has a EPS of -1.65 as reported by Google Finance. On the whole this stock is running at $7.33 per share (4:00 PM EDT, Sept. 15th, 2011), it might be a nice short and buy to cover, while making sure to keep up with the newspaper. Remember this is New York, not Hollywood—bad news is definitely bad news.
Track stocks that are suffering in the Pre-Market by visiting the SpeculatingStocks Pre-Market page.
Comments:
