Berkowitz Comments on BofA's (BAC) Value - "It Doesn't Get Better"
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Price: $13.24 -0.53%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 0.3%
EPS Growth %: -35.5%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 0.3%
EPS Growth %: -35.5%
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Bruce Berkowitz of Fairholme Fund commented on bank stocks and specifically Bank of America (NYSE: BAC) in an interview posted Wednesday.
He said he is comfortable with his portfolio composition, including financials - an area he is very familiar with and has seen multiple cycles. He said we are currently finishing up the down cycle and beginning an up cycle.
Commenting on Bank of America, he notes it has book value of $20, tangible book value of $12-$13 per share, and earnings power of $4 per share. "It doesn't get any better" when it comes to value investing, Berkowitz said.
Commenting on the ongoing litigation between Bank of America and MBIA (NYSE: MBI), another portfolio company, he notes the company has already reserved for, or almost all reserved for, the settlement. Bank of America has such significant cash flow, it will not be a big deal. However, it will be a big win for MBIA. He said both stocks should go up on a deal as Wall Street hates uncertainty, and this will remove it.
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He said he is comfortable with his portfolio composition, including financials - an area he is very familiar with and has seen multiple cycles. He said we are currently finishing up the down cycle and beginning an up cycle.
Commenting on Bank of America, he notes it has book value of $20, tangible book value of $12-$13 per share, and earnings power of $4 per share. "It doesn't get any better" when it comes to value investing, Berkowitz said.
Commenting on the ongoing litigation between Bank of America and MBIA (NYSE: MBI), another portfolio company, he notes the company has already reserved for, or almost all reserved for, the settlement. Bank of America has such significant cash flow, it will not be a big deal. However, it will be a big win for MBIA. He said both stocks should go up on a deal as Wall Street hates uncertainty, and this will remove it.
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Bank of America, Earnings, Bruce BerkowitzComments
BAC
Agree. Great value after disatrous downfall.
Only problem is they have a LOT of bonds and and other outstanding obligations.
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hedge funds
hedge Funds on Apr 4, 2012 06:54 PMMark as Spam | Reply to this comment
Hedge funds
Hedge funds are great vehicles for their managers to enrich themselves while leaving little alpha for their investors. Of course there are some exceptions but most hedge funds lost money last year.