Nothing. It added no real value to BAC's stock, as he bought the preferred. It added capital, but at very high 6% cost. It did not change all the challenges BAC is still to face. It did not alter the way BAC is perceived on the street - the last financial to invest in due to Countrywide overhang. It added extra angst among the common stock investors, especially very prominent ones, who feel duped and disadvantaged, and are voting with their shares, like Doug Kass, who sold today and called the deal "stupid". It made BAC look extremely desperate and untrustworthy, only days after they announced no need for cash.
I can go on. There are no positives in this deal for BAC, and financials, and the market overall. The only positive is for Buffett. Way to go, sir!
This deal shows yet again that we are heading way the heck lower in the overall market, regardless of what "the Buffett put" for BAC is. It marked yet another short-term top for already battered sector. Financials and the market kept on falling for another 6 months after everyone quickly proclaimed the bottom in Sep 2008, when Buffett did a similar deal with Goldman.
I do not feel more confident due to this deal, not a bit at all!!!
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