Thursday, May 7, 2009

Sticking My Neck Out

I don't know where the market is going, I don't know where financials are going. But I am going to stick my neck out and say BAC will close below $11 this week.

Bank it, book it, ship it. The technicals nor the fundamentals support its current level. Not to mention dilution. Someone is going to throw cold water on the face of the bull and wake it up with regard to BAC.

1 comment:

  1. I agree with the sentiment, am unsure of the timing.

    If the Govt. is about to switch tens of billions into equity, a conversion price has to be fixed at some point in time and it may be that the recent price jump is an attempt to minimise the dilution that implies - in other words to give Timmy G. as little as possible for his money.

    Does anyone know when that switch might occur and at what price? Until that price is fixed, I don't see the BAC lift-off reversing, but once it is, then look out below!