The BoormanBlog

Bank of America came out with Q2 profit of $0.72 vs. $0.53 estimates. Booyaa!!

I may unload some today and buy it back on a pullback.

Stay tuned…

Did I speak too soon? Ho-Lee COW we had a good day yesterday. Bank of America roared back with the rest of the financial sector over 4 points to $22.67!!! Woo Hoo! Talk about skyrocketing. Of course, this is the 3rd week of the month, so I’ll bet you dollars to donuts that this is a classic short squeeze. We may see BAC fall again by early next week after options have expired.

Then again, maybe this is “the bottom” and a recovery is on the way? Future oil demand is falling, along with the price of oil. The government (rightly or wrongly) is bailing out Fannie and Freddie. This may be the tipping point toward a new bull market!!

Time will tell.

BAC closed down AGAIN today at $18.72. Oh. My. Goodness. This is madness. Dividend yield is over 13% now. Looks like everyone is pricing in a dividend cut. This is messed up. Big time. I’ve already lost my shirt. Now I’m losing my lunch.

OK, seriously. Is Bank of America going out of business or what? This is nuts. BAC is now at a 10 YEAR LOW!!!! This is just nuts.

Vonage is performing better than this dog. Lucent is performing better. Sheesh.

Well, not quite into black. Let’s just call it….a little less in the red . BAC had a good day today, rocketing up more than 9% on heavy volume with no real news. Does this signal a bottom? Only time will tell. As for me, I’m not asking too many questions. It’s the first significant update that Bank of America has had in a looooooooooooooooooong time. I’ll take it, and about 10 more just like it, then I should about break even!

Seriously, this has got to be one of the dogs of the Dow. Woof! Can’t wait to just break even on this pile of garbage

Good grief! Can Bank of America (BAC) get ANY lower?!? This is rediculous. The dividend yield is way over 10% at this point. That’s pretty much the only reason to own this pile of garbage :(. I’m hanging in there as best as I can and buying more on the way down, but I’m almost out of cash!

Man this is hurting. But hopefully we are nearing the end. The financials will come back. You’ll see. I hope.

I am continuing to losing my shirt on BAC. Good grief, we’re down to $27.10!! How low can this thing go?!?! The dividend yield is closing in on 10%. If BAC doesn’t cut the dividend at the end of the month, I’ll be surpized.

They should have backed out of the Countrywide deal.

I’m down about 40% on Bank of America. Stupid %$#@! subprime mess!! They should have backed out of the Countrywide mortgage deal. *sigh*.

I keep telling myself that it will come back. Should have bought some puts when I first opened my position. I darn well shouldn’t have kept doubling down every time the stock plunged.

But I keep telling myself that BAC is the largest bank in the country and it isn’t going anywhere. It’s got a big fat dividend (yield is up over 8% now because the stock price plunged). The Ken Fisher says the dividend is safe. So I’ve got some downside protection.

I’ll just collect my dividend and play the waiting game I guess

Oil rose by a record $10+ today, to an all time high of just under $140 per barrel. This contributed to the stock market falling by nearly 400 points. When lumped in with the credit crisis and the sub-prime mess, a lot of people are worrying if this is the financial equivalent of “the big one”.

First things first. DON’T PANIC!!!

As Jim Cramer often says, “Nobody ever made a dime by panicking.”. He’s right. Looking at Yahoo! Finance’s take on the stock market today, it looks like this was nothing more than the market reacting to a prediction by Morgan Stanley that oil would be at $150 a barrel by July 4th.

That’s it.

A prediction.

I don’t about you, but I don’t think Morgan Stanley has a better crysal ball than the rest of us. Numbers were already released not two weeks ago that people were driving less for the first time in decades. Demand was slowing for gasoline. Oil was beginning to decline. I’m more inclined to belive hard data than some company’s prognostications any day. I know, I know “Lies, damned lies and statistics”. You can use numbers to justify almost anything. But hey, at least these are real numbers!

My second point: I think it’s a head fake. Everyone is getting hysterical and the shorts are calling them on it. I looked at my holdings in the ultra-short oil fund (DUG), which should have been down HUGE today. It was actually UP about 2.5%!!! Cooler heads are prevailing here. They know this oil pop was going to be over when the sun went down.

That was all the convincing I needed. I sold the rest of my position in USO today. Yep! More cab fare home! Maybe enough left over for some ice cream. No, I mean the good stuff! I’m talking Maggie Moo’s baby!

If you can’t beat them join them.

I think the shorts are calling this spike in oil total B.S. by Morgan Stanley hysteria. I’m betting oil goes down on Monday.

It’s been awhile since I wrote about my investing activities, and I thought I’d catch up. I sold the rest of my position in Ford, because it looked like the stock was coming down to earth. I wish I hadn’t sold half my position in USO because the price of oil never went down like I thought it would.

That said, check out DUG, which got a mention on Fast Money on CNBC tonight (before I had a chance to get in ). I was looking at this one over the holiday weekend. This ETF is an ultra short oil fund, so if the price of oil drops 1%, this fund goes up 2%. I’m loving this one. All I need is one nice correction and it’s cha-CHING!!