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Questions Regarding Common Shares
My apologies in advance if I am asking redundant questions. I am a former and recovering LEHMQ holder, (held 2.2Million shares at one point) and I am not looking at WAMUQ.
During the settlement, has their been any value or possible payout been established? It seems that this has been at .06 threshold for several months thus I am wondering if that is some sort of backstop or ceiling?
I am looking to open a position and I have read much of what is on your site, however there seems to be little information with regards to the negotiations that have taken place thus far?
Thank you, any information would be welcomed.
Cheers
I hope it turns
Out well for you as well as anyone who bought shares. I am not here to dissuade anyone, I held 2.2Million shares at one point. And sold recently a position 1.2Million.
I wish everyone well here.
Happy Holidays.
Cheers!
I think you might
Be a bit confused. Most of what you have cited in terms of lawsuits covers "J" series which are Pref. Shares and options and so forth.
I spoke to Rob Lemons and a twit by the name of Erica Demolita (sp). I can tell you that they, unlike Tom Hummel are the least congenial people I have spoken to in some time.
I have paraphrased the following questions and replies. I have combined their replies as they basically asserted the same drivel.
1. What is the effective date? (LEHMQ stops trading)
Marsal & Alvarez requested the first available date as January 31st, 2012. There are a list of conditions that have to be met, if they are not, it will be delayed. However we expect the the effective date to take place within the 1st Q, 2012.
2. Will common shareholders receive anything?
I would refer to the POR. However I can agree with the characterisation that Commons will not be part of the disbursement of funds.
3. If there is an excess of equity recovered in excess of $65 Billion, will that be available to Commons?
I would again refer you to the POR. You have to understand that Pref. classes would be first, second and third in line before Common shares. So effectively no.
I have nothing more to add to this. You can call for yourself and ask. Conjectures are purely that, opinions that generally have little to no foundation.
Best of luck to all.
Right Precisely
(Smile) Clearly there is a lot of misinformation abound. I simply wanted to help provide some clarity. I clearly no longer have a stake in LEHMQ, as I have sold as stated. Yet I just wanted to help others make an informed decision.
Cheers
Spoke to Lehman Attorney Yesterday
I posted this on yahoo as well. I spoke to Tom Hummel yesterday. Pardon if I misspelled his last name. A very congenial bloke. He explained that Common Shares will be "canceled" and that there will be no equity for Common holders.
He also stated that the first date of possible cancellation is January 31, 2012. That is unless Marsal & Alvarez request an extension. However he did not think the stock would trade beyond the 3rd Q.
He said specifics to the Common Shares are the expertise of another attorney at Weil, Gotschal and Manges, by the name of Rob Lemons. I have left him a message yet I doubt that any of the information will be materially different.
Disclosure: I sold all of my 1.2 million shares yesterday.
Best of luck to all.
There is no question Lehman
Will return. All you have to do is read the filing and their reorg. plan. However what remains is will shareholders receive anything. At this juncture, the POR leaves "everything" to be desired.
The stock itself will probably see a bounce or two in the next year.
I think even if Judge Peck approves the plan today, Lehman will trade for another year. Minimum.
Lehman Common Shareholders Receive .20 Per Share ?
Well that is my supposition of justice at least. You have a Law Firm (Lehman's Administrators) that was "appointed" by Judge Peck, whom has objected to their outrageous charges, yet continues to approve them. Mind you this law firm has charged in average of $76 Million Dollars a month. That's 76,000,000. Or roughly $3.6 Million dollars a day. That is work week day.
Based on the cash position of Lehman, of some $23 Billion dollars, paying out .20 a share with 694 Million shares outstanding, that be $138.8 Million dollars.
That represents .006% of six tenth of one percent of Lehman's cash. Better yet, Marsal, the managing Partner of Marsal & Alverez, hopes to raise another $65 Billion in the coming years. At that point, a payout of .20 would represent less than one tenth of one percent.
Of course, we are dealing in American style capitalism. Thus common shareholders have absolutely no value, no recourse, and within the contest of Corporate America, the biggest suckers for buying common shares. That is how they are viewed.
If Judge Peck could exercise a modicum of justice and reasoning, he would protect the common holders as well.
Not holding my breath.
Technically Speaking -
Most Hedge Funds will not dump BAC if it treads below $5, as they did not when it went below 2.92. The fundamentals DO NOT support BAC's stock price. This should be at $15 RIGHT NOW. This is a confidence crisis, one that is embedded in Brian Moynihan's ineptitude.
That said, BAC has repeatedly said they do not believe in a RS. I have spoken the bonafide p r i c k IR Kevin Stitt and his counterpart a true gentleman Lee McEntire. Both have reiterated that Brian Moynihan has stated that he does not believe in Reverse Splits.
And one done from a position of weakness can actually damage BAC value more than allowing it to drop below $5. As of the moment, it has become the inexplicable stock that drops on headlines not fundamentals. And when the tide changes, the shorts will have to cover at a mighty pace.
Yet first and foremost, BAC needs a real CEO. Tom Montag should have been CEO from the start.
For now, it is a waiting game. Something has to give. My guess is Brian's job is on the line and this could be the trigger point at which they get rid of him....6 months too late. Yet it will be a positive for BAC regardless.
There is a great deal of idiocy about BAC -
Failing. I will be the first to say the Brian Moynihan will lead this company to $3, yet BAC will not fail. Now, if Europe does not get it's act together, then, yes BAC will fail. Yet JPM will fail first, as will Citi and GS before BAC does.
And at that point, you needn't worry about paper money. It will not be worth the paper....well you know the rest.
Insider Information Alive and Well -
On the heels of finding out that Sec. of Treasury Hank Paulson was sharing insider information with fellow GS alumni (U.S. has become a third world country in corruption, economics to follow) we now know precisely why BofA inexplicably dropped yesterday.
Then yesterday, the market was up 300 points, BAC lost all of it's gains and most banks began to take a hit as well. And then again today, whilst the market was up.
Well now we know why, S&P's downgrade was in the pipeline.
Nothing will fundamentally until -
Brian Moynihan resigns, is fired or relieved of his duties. This is a crisis of confidence and the inability of the guy at top to instill any in the company. This is a failure of monumental proportions on his fragile shoulders and his alone.
I hate to agree with Gaspirano on anything, yet he was spot on in saying that Brian Moynihan is perhaps the most "unqualified CEO in all of corporate America". And he has shown as much. Thus this bleeding will continue until he is forced out.
Period.
You can actually operate a camera? I figured your keyboard has all symbols to help you write.
Cheers
Brian Moynihan Must Be Fired - READ
I have said for the better part of a year that Brian Moynihan has to go, and for the last 10 months I predicted $7.....
About a year ago, I suggest to Kevin Stitt that BAC should file BK on behalf of Countrywide. He ridiculed the suggestion stating that BAC had bought CW and that it was not legally possible. I challenged that assertion to no avail.
Then comes the news from WSJ that BAC has been mulling proceeding with BK for CW for more than year however Brian M-o-r-o-n Moynihan had resisted the calls internally due to fears that the rating agencies would downgrade BAC and the stock price would suffer from the perception of one of it's business filing for BK protection.
WELL GUESS WHAT M-O-R-O-N (aka Brian M) today's action by Moody's came with the benefit of absolving yourself from litigation and Countrywide's losses destroying BAC's earnings and reputation. Had BM agreed and allowed BAC to divest CW by means of BK, months ago, they would have taken an initial hit at which point BAC was at $15 and even a $5 drop would have been manageable yet more importantly BAC would have escaped the $100 billion liability cloud of Countrywide. And from here on out, BAC would have enjoyed positive earnings with the drag of CW and the litigation matters that have hammered the stock.
Yet if BAC takes action now on CW, assuredly BAC will head into the $3 range. Our only hope is that Warren Buffet brings pressure to bear and BM is removed as CEO.
Removal of BM will add $2 - $4 to the stock price.
Naming a credible CEO will add another $2 (Montag from Merrill)
Place CW into BK
Divest U.S. trust since it has still not been fully integrated.
Sell full stake in Bank of China.
BlackRock Stake should have been sold last year yet BM moron waited too long, lost 40% of value.
Spin Off Merrill Lynch with BAC as majority shareholder. Grant 1 share for every 10 shares of BAC held to current shareholders. Merrill alone is worth $20 a share.
BAC's book value as of right now is $20.44. With $420Billion in CASH!
BAC's bleeding will not stop until -
Brian Moynihan is gone. Read my posts, I have said this is headed for $7 for months until this C**ks**ker is gone!
All of you whom have shorted this, once he is replaced and he will not last the year, will have your collective dirty asses handed back to you.
Cheers Carl -
The issue here is that we also penalise banks or the institutions rather than the people behind them. We treat institutions as if they were a living breathing entity, when in fact BAC or even Goldman is innocent. IT IS THE INDIVIDUALS that run these banks that are committing crimes. If the SEC actually charged the individuals, reached into their pockets and carried real penalties for the persons not the institution itself, then justice would be served. What does Blankfein care of Goldman pays $550 million penalty. It is not out of his pocket, it is the shareholders that pay.
Evo -
I think a one year plan is a minimum requirement on BAC. This will eventually erupt, no question, however the reality is time.
I hold 15K shares at the moment. I have been accumulating over 3 years now. I still have $2.90 shares, however the average price has increased significantly as I recently purchased 3K shares.
If we can shed Brian Moynihan in the span, look for BAC to gain $3 just from that news alone.
Actually -
No. Your post is filled with silly conjectures from Penny Stock websites. The hyperbole's you used to trump up most of these silly little issues is even less material than Moynihan's inept management style.
That said, BAC is a sick little stock, yet one that should be easily trading at $17 right NOW!
I will be at the investor conference tomorrow in Charlotte.
I will post pictures if time allows.
Your little rant -
There is hilarious at best and hysterical at worst. I am nor certain you actually understand what is going on. Yet I implore you to short BAC. Short and short heavy.
Leveraged 24:1 -
READ THE FINANCIAL STATEMENT. Goldman is leveraged 31:1. At the height of the financial crisis, BAC was leveraged 37:1. Thus I would say they are in a far better state at the moment.
Knocking BAC is one thing, talking out of your....well that is entirely different matter.
Well I think any discussion -
Of a BK is ludicrous at best. Anyone that thinks BAC is going bankrupt does not belong on this board or is not up to discussing this at an intelligent level.
REALITY CHECK -
For all the idiocy about BAC being in line with Citi's value currently @ $4.58, here is a little reality check for the numbers challenged.
The BV of BAC is $21.44, even with the over inflated Putback claims of $20 Billion (BAC estimates 7 to 10 Billion, most reputable analysts place it at 13 to 15 Billion) that would represent less than $1.60 dent in the BV, WITH BAC LIQUIDATED NOW.
I may deride Moynihan, because he is a moron, yet BAC's potential is intact. The issue is management. We all make outlandish claims from time to time, yet be reasonable!
Whilst I appreciate your -
Technical analysis, I don't think you are properly accounting for BAC's issues and the CEO's abject failure to execute.
My six month target is $13 unless BAC settles with PIMCO and the AG's and defines a clear path to profitability. Would not hurt to get Moynihan fired or shot.
You're not paying attention -
The floor has dropped. BV is $21.44, and those lumps under your feet are the gravel at the GROUND FLOOR!
You know -
I think this is less about Obama, and more about the system. The system was set up under the Bush Administration and carried forth under Obama's Administration with little to no change. It shows that both parties are complicit. And the only true change will come via a revolution. A substantive change with real penalties. We often imprison and in some cases exercise capital punishment on those whom rob and destroy lives. Yet these CEO's and other so called executives steal and blindly rape and rob millions of people at a time. And yet they do so with absolute impunity.
All you have to do is execute a dozen CEO's and this nonsense will stop.
Well first of all -
There was ample reason for WAMUQ's run!
1. They were granted an Equity Committee.
2. They had legal representation.
3. The Judge was seemingly willing to hear their case (Investors).
4. For a brief yet fleeting moment, it seemed like this country (the U.S.) was actually going to live up to its supposed promise of fairness and equality.
That is of course before it all came crashing down and we all realised the U.S. has become indeed the most corrupt nation on the planet....legally!
There is still hope for LEHMQ, yet it is becoming more difficult to see the light with each passing month.
Anyone know when LehmanLives
Close down? The blog site is no longer online? He had stopped updating long ago, yet I am curious as to when he went off line?
I hold 600K shares, I held as many as 1.2 Million however I have been steadily selling off.
A little worrisome that my holdings are greater than today's volume.
Cheers
Highly Doubt -
BAC management has lost all credibility with the street. The only chance BAC has to avoid $10, is with Moynihan's ouster. Not even a settlement with Pimco and et al will help at this point.
Did you receive $220,000,000?
And only have to pay back $70,000,000 of it?
Every American, every man woman and child should be in the streets demanding justice!
http://www.rollingstone.com/politics/news/the-real-housewives-of-wall-street-look-whos-cashing-in-on-the-bailout-20110411?print=true
We may see $10 -
At this point. Moynihan has to go, his key to all of this was "execution", well the only way out of this now is executing this moron!
Great Article on Brian Moron Moynihan -
http://seekingalpha.com/article/261390-bofa-shareholder-letter-swing-and-a-miss?source=marketwatch
And by the way, we actually ended up in the red if you look at the fact that BAC opened at $13.45, hit $13.61 and closed at $13.36.
I am certain beyond all doubt, next year around this time we will be around $14, unless Moynihan is gone.
Ladies & Gentleman -
Please exit to your left. BAC is now officially dead. We are going nowhere for the next 3 to 5 years. 3 Years from now, BAC will still be in this range. Period. Unless there is dramatic change at the top and the bank is broken up.
No one is -
Questioning BAC's potential. Rather if you look at BAC's reality, it should not be trading at $13 and unquestionably we will touch $12 next week. The reality is at this very moment this is a $17 stock. Yet Moynihan has failed at every juncture to defend and bolster the PPS.
If and when BAC rebounds, will we will always trail based on Moynihan's inability to promote, defend and push BAC.
Well I think the only reason -
We need now is that BAC trails all other financial institutions. Period.
Cheers
Brian T Moynihan -
Must go. Period. Since the Japanese Earthquake and Tsunami, The DOW has gained back over 600 points, whilst BAC has actually lost $1.41.
His horrific bungling of the dividend payment, and his usual MO, BAC's silence a full three days after initial announcement of which banks were allowed to increase dividends is enough to call for his ouster!
New York Times Article on BAC -
Most poignant "Even so, analysts say that the rejection raises serious concerns about the bank’s leadership team, including its chief executive, Brian T. Moynihan."
http://dealbook.nytimes.com/2011/03/23/feds-clash-with-bank-of-america-raises-questions/?partner=yahoofinance
In Defence of Moynihan?
You can contend that Moynihan merely wanted to return equity to shareholders, that his overriding confidence in BAC was the sole reason he was so aggressive in attempting to increase dividends a thousandfold. However the closer examination reveals a man beyond the realm of incompetence.
Surely the Feds are playing hardball with this issue. If you can allow FITB to increase dividends, BAC would have been all but assured to do the same. Yet it is my belief that the Feds are twisting BAC's arm to capitulate, since they are a Plaintiff along with Pimco on the Buyback/Putback demands. Yet Moynihan bungled this yet again.
1. Reality is, Moynihan is finally feeling the pressure from institutional investors and with the shareholder meeting less than a month away, he realised he had to do something. Yet once again when you have no core value or strategy, this is what happens. His desire to help alleviate shareholder anxiety results in this. BAC is closer to $12 at this point than $14, once again! We will probably establish a new 52Wk Low this year!
2. I had presumed that BAC would increase the dividends to .05, at MOST! Yet the intelligent thing to do was for BAC to increase dividends along with the other banks, by no more than a penny! Then apply for a more generous payout the second half of the year. Perhaps to .05! With promises of a more significant move in 2012. Yet Moynihan tried to get cute with his overly aggressive .10 increase. I think he was trying to create a little shock & awe! Well, thank you we are now down 4% and will probably touch $12 by the end of this week or next!
I can tell you that with 12,000 common shares, I would have appreciated a yearly yield of $4,800 far more than $480! Yet again, his incompetence has hurt the shareholder.
At this point, I am starting to believe it is actually over for BAC. Whatever potential BAC had has been squandered. I believe in the brand, however management has polluted the waters beyond reproach. This may be dead money till 2013. For the first time since purchasing BAC, I am seriously contemplating selling my shares.
Link - Now We Know Why BAC Has Been Tanking -
http://www.bloomberg.com/news/2011-03-21/bank-of-america-bad-loans-may-have-delayed-plan-to-raise-payout-kbw-says.html
Brian T. Moynihan Has 3 to 6 Months -
This spineless excuse for a man has 3 months tops if BAC is not above $15 in the next three months. That is a very low lying fruit for this stock, yet you cannot raise the bar any higher.
If BAC is above $15, I think the institutional holders will provide him an additional 3 months to get it over $18.
Word on the street is this, he has less than 6 months to get BAC on track. The prices I have mentioned above, are my own projections.
Let's hope the three month deadline is all he gets.
Dear Nessco,
Years from now, the evidence will show that the Bank of NY CEO nearly had the job. Yet his desire to move the HQ to NY and break up BAC especially Merrill by 2010 was a major point of contention.
Granted not to many other qualified people were interested, yet he was, however the BOD wanted someone loyal to the brand and Lewis' vision. The BOD has done all of us a major disservice. First with naming an under-qualified person to the post and secondly allowing him and his minions to plow along with his ineptitude unchecked.
Most senior Merrill brokers believe that BAC can run up to $24 by summer. Even I think that is ludicrous, Moynihan in charge or not. Yet with him we will not see $20 of the end of the year! We could easily be right at this ridiculous range!
If he had any intelligence, he would have requested a .01 increase in dividends increase in the first half, and avoided the headline that read BAC only large bank not to increase dividend. Then applied for another modest increase in the second half. Then BAC would have looked great, increasing dividends TWICE IN ONE year.
BAC will probably increase the dividend to .03 to .05 in the second half, yet this moron could have broken that up and made BAC look much better, rather than give the impression that perhaps BAC did not fair well during the recent Stress Test or worst yet failed it all together.
He lacks basic street smarts to run an institution like BAC.