UPDATE: BofA (BAC) Investors On Edge, Vague Rumors Sends Stock Plunging
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Price: $38.37 +1.70%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 2.8%
EPS Growth %: -11.7%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 2.8%
EPS Growth %: -11.7%
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(Updated - March 19, 2012 5:01 PM EDT)
With shares of Bank of America (NYSE: BAC) up 72 percent year-to-date and crossing the $10-share level early Monday, shareholders of the mega-bank are getting a little nervous.
To illustrate how nervous, a vague trading floor rumor of a secondary offering this afternoon sent the stock in free-fall.
After trading higher most of the session, the stock started selling off just before 3PM ET. With the sell-off, by about 3:30PM ET trading desk were buzzing with the secondary rumors.
While a secondary is not out of the question - and may in fact be a smart move - the timing of the sell-off, which was followed by the rumors, would give a skeptic pause. Nonetheless, investors in the embattled bank may remember the $5-levels and are quick to lock-in gains. How can you blame them?
As suspected, Bank of America is now denying the rumors. The company told CNBC, it has no intention of issuing new equity in a secondary offering.
With shares of Bank of America (NYSE: BAC) up 72 percent year-to-date and crossing the $10-share level early Monday, shareholders of the mega-bank are getting a little nervous.
To illustrate how nervous, a vague trading floor rumor of a secondary offering this afternoon sent the stock in free-fall.
After trading higher most of the session, the stock started selling off just before 3PM ET. With the sell-off, by about 3:30PM ET trading desk were buzzing with the secondary rumors.
While a secondary is not out of the question - and may in fact be a smart move - the timing of the sell-off, which was followed by the rumors, would give a skeptic pause. Nonetheless, investors in the embattled bank may remember the $5-levels and are quick to lock-in gains. How can you blame them?
As suspected, Bank of America is now denying the rumors. The company told CNBC, it has no intention of issuing new equity in a secondary offering.
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