2 edits | reply to sailor
Re: Stock Market Crashing...down 330 points right now said by sailor:To add ..and just think of all those gamblers who bought CALLS yesterday after the Buffett rumor hit and then when nothing happened today, they closed them out so they wouldn't lose their money only to see tonight the news about BOA...and tomorrow they will be sick when they see those same calls probably jumping 5x's or more in value. Window jumping time..  Buy on rumour, sell on the news.
But the key part is to always wait until the news actually comes out, lol.   |
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sailorPremium
join:2003-10-21
Long Island
kudos:6 | You know CFC is up over $26.00 in after hours trading on this BOA news but once people start dissecting the numbers it just might not turn out to be such a positive for CFC shareholders..
Tomorrow, especially at the open, should be very interesting for CFC. I would guess it will be UP due to the 5k September 25 CALL Volume I made note of. But we will have to see what happens in the morning after the number crunchers check out every single detail of this BOA announcement...Could end up being a real deal for BOA and not a deal for CFC shareholders.
We'll soon find out. |
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1 edit | said by sailor:Could end up being a real deal for BOA and not a deal for CFC shareholders. We'll soon find out. That's what happens a lot with these so-called equity deals. It's called shareholder dilution.
From what we know so far the deal is composed of dividend paying preferred shares that can be, but not necessarily, converted into common shares at $18. Which if converted represents close to 20% of the common shares.
There are also restrictions, i.e. once converted they can't be sold for 18 months. What happens though if things like the dividends are in arrears? Does that benefit BoA and remove some of the restrictions. Or improve their equity stake? The devil is always in the details that's for sure.
Under the terms of the deal, Charlotte, N.C.-based Bank of America acquired $2 billion in the form of nonvoting, convertible preferred stock yielding 7.25 percent annually, Countrywide said. The shares can be converted into common shares of Countrywide at $18 per share, with certain restrictions. » biz.yahoo.com/ap/070822/countryw···ml?.v=12
Edit: Just some quick math but a 7.25% yield on $2 billion equals $145 million in dividends per year that must be paid to BoA.
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You have to wear the foil shiny side out or it doesn't work. - Hanrahan |
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 justinAustralian
join:1999-05-28
New York, NY
kudos:7 | »nakedshorts.typepad.com/nakedsho···-ac.html
very funny. |
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cacoPremium
join:2005-03-10
Whittier, AK | reply to Dark Shoes
I called this one last week.
»Re: Stock Market Crashing...down 330 points right now
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»www.seabee.navy.mil |
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1 edit | That remains to be seen, right now i give them a 50/50 chance.
Was just wacthing Angelo on CNBC and he said some interesting things, that they are making their best loans in 10 years with the best pricing in 5 years...? Then in the next breath that were heading to recession... |
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 AmeritecTechChange we can believe in, 1922Premium
join:2002-09-06
Houston, TX
kudos:6 | said by aztecnology:Was just wacthing Angelo on CNBC and he said some interesting things, that they are making their best loans in 10 years with the best pricing in 5 years...? I can believe that. Paranoid documentation now combined with a lot of free money injected by the Fed.
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"Independent thinkers tend to ALWAYS have someone Not agreeing with them. It's The non-thinkers that ALWAYS come in legions."
-John Callari |
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