Monday, August 15, 2011

"Bruce Berkowitz Added to His Bank of America Holding" (BAC)

Current ank balance sheets are basically opaque so you have no idea what is inside the black box. It might be treasure or it might be trash. All you can hope to do is admit you might be a fool and later try to find that greater fool.
Keep your stops tight and your sphincter tighter.
This is a risky little game and it would be a shame to add the price of underwear to your other transaction costs.
The stock closed at $7.76 up 57 cents (7.93%)
From Deal Journal:
Fairholme Capital Management, the mutual fund management company run by billionaire investor Bruce Berkowitz, added to its massive holding of Bank of America during the prior quarter, according to a filing Monday, though reduced its stake in investment bank Morgan Stanley.

The stake of 99.65 million shares was increased by 7 million shares and was worth $1.09 billion at the end of June, according to the filing. It would be worth about $762.3 million as of Monday’s closing prices.
Berkowitz last week had invited all “skeptics” of Bank of America to join him on a conference call with the bank’s Chief Executive Brian Moynihan where the investor pledged to ask the toughest questions submitted. The call came amid a brutal week for the stock in the nation’s biggest bank by assets, but shares still fell further that day. The stock, which ended last week down 11%, climbed 7.9% Monday but remain down 42% this year....MORE
Time to Bet on Bank of America (BAC)