In yesterday's post, "Bank of America Downgraded by Moody's, Company Disagrees (BAC; WFC; XLF)" we saw Jim Cramer's September 13 quote on the big bank:
Here's his September 13 Lightning Round comment:
Is that Cramer under there?
Here's his latest via The Street:"...there could be as much as $30 billion in legal exposure... they are reserved for a lot of that when you take the Buffett money and the sale from the Chinese bank... the litigation risk is not as bad as people think. The earnings risk is different... when people are cutting JPMorgan's earnings estimates, BAC is not going to make a lot of money. They are going to make money, though... It has done nothing, it has been a loser. I think it was bottoming when Warren Buffett bought it, and here, I think it is bottoming."The stock had closed that day at $7.00. Look for him to mention it a couple times in the next day or so.
Bank of America (BAC_): "Bank of America is not done going down. They're in bear market mode and I'm not recommending anyone buy a bank."The stock closed down 7.54% yesterday, at $6.38.
This morning it is trading down another 2.51% at $6.22.
Although far from perfect we at least mention our mistakes. On August 15 we posted:
Time to Bet on Bank of America (BAC)
The very next day we reversed direction with:
Lincoln on Bank of America (BAC)
See also:"I will prepare and some day my chance will come."-A. Lincoln
Embrace your losses.
Booking your losses should be a joyful thing.
The first loss is the best....aw screw it.
Tight stops give you the opportunity to look like a moron but if an individual or a firm is to survive, you must avoid the cat lady syndrome (you've heard it every time the guys in the biohazard suits are called in):
"It started with just three but then, well. it kind of got away from me"
The only way to prevent losses from getting away from you is to close the trade one penny above the level you've given yourself. If you are indecisive or if your ego is so childish that it won't allow you to recognize a loss you have to ask yourself what the heck you're trying to accomplish....MORE
Remember "Is Bank of America At Risk of a Death Spiral? (BAC)"
"A $2 Million Bet That Bank Of America Will Be $4 By November" (BAC)
"Will Bank of America's Buffett Deal Backfire?" (BAC)