Author Topic: BAC-WT - Bank of America Warrants  (Read 2071560 times)

Txvestor

  • Sr. Member
  • ****
  • Posts: 286
Re: BAC-WT - Bank of America Warrants
« Reply #7300 on: July 12, 2018, 05:21:17 PM »
Yet to convert. Why can't one pay the warrant conversion price at the appropriate time and keep the shares on a 1:1 conversion basis?


lschmidt

  • Newbie
  • *
  • Posts: 31
Re: BAC-WT - Bank of America Warrants
« Reply #7301 on: July 12, 2018, 05:35:06 PM »
Terms of that TARP warrant only support cashless exercise AFAIK.

Viking

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1319
Re: BAC-WT - Bank of America Warrants
« Reply #7302 on: July 12, 2018, 11:37:42 PM »
Calculated Risk provided an update on many of the key US economic stats. Bottom line, the US economy continues to perform very well. This should be supportive of earnings of the big US banks.

https://www.calculatedriskblog.com/2018/07/q2-review-ten-economic-questions-for.html

John Hjorth

  • Hero Member
  • *****
  • Posts: 2031
Re: BAC-WT - Bank of America Warrants
« Reply #7303 on: July 13, 2018, 06:39:19 AM »
Thank you for sharing that particular blog, Viking.

I like the way Mr. McBride works on & with the blog, putting his own expectations on the line and online, and then systematically does follow-ups. I've started following him on Twitter.

- - - o 0 o - - -

2018Q2 are now out for three of the Big Four US banks - BAC will be the last one to report on Monday. It looks good on overall basis, but there is differencies in the reported numbers that seem to me to become clearer and clearer.

C doing OK, but not in any way flamboyant - I would say basically as expected, the numbers for WFC are affected by the FED straightjacket, & JPM now really starting to pull away from the two others in the reporting today. For JPM, I think net profit of 34 B is within reach for 2018, after generating ~ USD 25 B the last three years. Simply mindbogling to  think about it, even taking the tax reform into consideration. I expect BAC to follow JPM monday, as right wingman in the slipstream of JPM.
« Last Edit: July 13, 2018, 06:47:42 AM by John Hjorth »
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

Viking

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1319
Re: BAC-WT - Bank of America Warrants
« Reply #7304 on: July 13, 2018, 06:57:19 AM »
John, I have followed Calculated Risk since around 2005 and his analysis/advice helped me miss the downdraft in stocks in the 2008/2009 housing crash and stock market meltdown. I also like that he is fairly neutral polically.

I agree with your summary on bank results :-) JPM is the one to buy and forget about. I wonder when analysts will start to really push C to start to sell off more pieces. WFC continues to be the head scratcher for me... not sure what to make of its prospects moving forward.

What is amazing to me is how well the US consumer franchises are performing for the big banks (top line growth rate and profitability). If the US economy continues to grow these business lines will continue to grow above average. It would be interesting to calculate what these businesses on their own would be worth.

I will spend the weekend digesting the earnings information from the various banks. Let’s hope BAC continues its trend of posting solid results when it reports on Monday.
« Last Edit: July 13, 2018, 07:00:55 AM by Viking »

HalfMeasure

  • Full Member
  • ***
  • Posts: 119
Re: BAC-WT - Bank of America Warrants
« Reply #7305 on: July 16, 2018, 10:07:26 AM »
What a quarter, and on the back of a flattening curve...

Viking

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1319
Re: BAC-WT - Bank of America Warrants
« Reply #7306 on: July 16, 2018, 11:48:19 AM »
Yes, BAC results looks good. Better than C. But not as good as JPM. Results for all big 4 banks came in on trend and about as one would expect. Bottom line, US economy, consumer and businesses are all doing well and banks with a US exposure are benefitting (WFC excepted). Most importantly, the US economy is not slowing down but looks like it is accelerating. Near future earnings picture for the big banks looks very bright. I will dig more into BAC results the next couple of days when I can find some time :-)

Junto

  • Lifetime Member
  • Sr. Member
  • *****
  • Posts: 339
    • My Company
Re: BAC-WT - Bank of America Warrants
« Reply #7307 on: July 16, 2018, 11:50:23 AM »
What a quarter, and on the back of a flattening curve...

People are overreacting to the flattening yield curve spin. You have to remember where deposit costs started and the ability of these banks to hold rates paid on depositories down.  There are not many banks doing long-term investments in today's marketplace. The increase in the immediate to 5 year time frame is the best indicator of profit opportunity.

Framed as it relates to the mega banks. Regional and smaller banks are not as sheltered from rising depository costs.

Viking

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1319
Re: BAC-WT - Bank of America Warrants
« Reply #7308 on: July 16, 2018, 12:02:27 PM »
Jamie Dimon was asked about the flattening yield curve during the JPM conference call on Friday. He said it is not an issue as long as the economy was performing well (which it is). He said they were monitoring the situation but were not concerned right now. I follow Calculated Risk for all things related to the US economy. and he currently does not have the US even on recession watch.

HalfMeasure

  • Full Member
  • ***
  • Posts: 119
Re: BAC-WT - Bank of America Warrants
« Reply #7309 on: July 16, 2018, 12:27:55 PM »
What a quarter, and on the back of a flattening curve...

People are overreacting to the flattening yield curve spin. You have to remember where deposit costs started and the ability of these banks to hold rates paid on depositories down.  There are not many banks doing long-term investments in today's marketplace. The increase in the immediate to 5 year time frame is the best indicator of profit opportunity.

Framed as it relates to the mega banks. Regional and smaller banks are not as sheltered from rising depository costs.

Definitely agree. I'm just glad BAC is proving it to the market - all else equal higher long rates would be better, but clearly it's not as necessary as the market feared.