BAC are we getting close to a bottom?

Dusty answered 10 months ago …

Now there is a real question. "Seeking Alpha" has been picking at this one for nearly a year and seems to have gotten nowhere. There is one thing: a stock trading at less than USD10 does not have far to fall. Ken Lewis thinks BAC will be fine. Check back in a year or two for a real answer?

I had (for me) some serious money in this stock. I doubled my position recently which made my effective cost per-share half of what I had paid a couple of years ago. This is an attempt to be able to get out of the position more easily if things pick up at all. The amount of new cash required was laughable by the standards of not-very-long-ago.

If BAC survives the Depression and things look generally good, and it has not been practical to sell, the larger position will not hurt at all. If you have an interest in playing this game and can stand the risk of BAC vanishing, consider picking up some shares but wait for a big dip in the Markets due just like last year in late March or maybe April. Then there should be another major crash in October-November. Two fishing holes to try your luck with?

By fall of 2009 there should be a much better input of estimates of just how bad the next big wave of the Mortgage Tsunami (the 2010-2012 Alt-A wave) will be for the economy and the Markets, also.