Mr. Buffet helps so many investors and mutual funds to get out BAC (Bank of America) at 47% higher than the 52 weeks low price of $6.01. Yes, Mr. Buffet doesn’t lose money often, but I think this is the one just to help his friends before BAC tanks totally. As I understand about stock market, new low will be retested, the $6.31 was retested and $6.01 was in place. Until then, BAC up today is just a stunt.
MK2: Obviously, B of A is in store for an incredible amount of additional losses. Based on my calculations, Bank of America is set to lose roughly $2 trillion in the near term. With just $222 billion in shareholders’ equity, and $2.3 trillion in total assets, this would absolutely wipe the bank out. Read full article.
Update: 10/3/2011 BAC = $5.53 . I don’t believe in shorting, but I think it’s time to do what I believe in. Never buy new lows and never fear new highs.