Bank of America hits $21.10 a share
Source: http://thestockmasters.com/BAC-070708.HTMLPosted on Monday, July 7th, 2008 | In Financial, Stocks to Watch
Just wait until Bank of America (NYSE:BAC) cuts their dividend, then how low will shares get?
Barron’s lowered their outlook on BAC last week. They now expect BofA’s 2008 and 2009 earnings-per-share estimates to $2.20/$3.60 (from $2.70/4.00), largely reflecting continued uncertainty on the credit front and a more-conservative view of structured products/capital markets near term. Our second-quarter 2008 EPS estimate falls to 55 cents from 79 cents.
Barron’s price target droped to $25 (versus $34), which is approximately 2.0 times estimated 2009 tangible book value.
The buzz continues about “if” BofA cuts their dividend but its turning into more of a “when” consensus.
Other articles on the subject:
Look for Bank of America to chop dividend
Globe and Mail, Canada - Jun 27, 2008
Banking gamble: That fat yield on Bank of America stock
Los Angeles Times, CA - Jun 25, 2008
The lower the stock price falls the more BofA will have to payout, but can they afford the current 8.6% yield?
Sign of the times Masters. At this point, why not wait to see if they cut the dividend, then make your decision.
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