Comments on: The best way to buy Bank of America http://www.arohanvalue.com/2008/01/31/the-best-way-to-buy-bank-of-america/ Commentary on investing and events with distinct value tilt Thu, 28 Aug 2008 09:03:11 +0000 http://wordpress.org/?v=2.3.1 By: Options Strategery http://www.arohanvalue.com/2008/01/31/the-best-way-to-buy-bank-of-america/#comment-92 Options Strategery Fri, 22 Feb 2008 00:32:22 +0000 http://www.arohanvalue.com/2008/01/31/the-best-way-to-buy-bank-of-america/#comment-92 Another good option would be CFC Jul 08 puts. You can sell the $6 strike for 0.85. <em>Options Strategery's last blog post..<a href='http://feeds.feedburner.com/~r/OptionsStrategery/~3/237777730/naked-put-selling-focused-options.html' rel="nofollow">A naked put selling focused options trading strategy explained</a></em> Another good option would be CFC Jul 08 puts. You can sell the $6 strike for 0.85.

Options Strategery’s last blog post..A naked put selling focused options trading strategy explained

]]> By: Countrywide sellout too cheap? | Arohan's investing life http://www.arohanvalue.com/2008/01/31/the-best-way-to-buy-bank-of-america/#comment-78 Countrywide sellout too cheap? | Arohan's investing life Tue, 12 Feb 2008 18:47:52 +0000 http://www.arohanvalue.com/2008/01/31/the-best-way-to-buy-bank-of-america/#comment-78 [...] This is getting interesting and even if buying CFC may not work out as a way of getting BAC cheap as suggested in an earlier article (that is if the sale does not go through. If the sale goes through at the current or higher prices [...] […] This is getting interesting and even if buying CFC may not work out as a way of getting BAC cheap as suggested in an earlier article (that is if the sale does not go through. If the sale goes through at the current or higher prices […]

]]> By: Arohan http://www.arohanvalue.com/2008/01/31/the-best-way-to-buy-bank-of-america/#comment-61 Arohan Wed, 06 Feb 2008 16:52:26 +0000 http://www.arohanvalue.com/2008/01/31/the-best-way-to-buy-bank-of-america/#comment-61 Freefrombroke, Thanks for visiting! There are risks, but I think they are minimal. BAC really covets the Countrywide franchise and needs a growth vehicle. They were willing to take a large stake at 18. Now if the buyout is derailed in situation where the CFC stock rises above the offer price, the strategy should still work but you will have a gain on your hand off CFC stock which you may want to liquidate. The bigger risk would be either BAC trying to get even cheaper or CFC going bankrupt before the buyout is closed. Its every investor's judgement call but I personally feel comfortable that this is a minimal risk Additionally, there doesn't seem to be any antitrust implications. Freefrombroke, Thanks for visiting!

There are risks, but I think they are minimal. BAC really covets the Countrywide franchise and needs a growth vehicle. They were willing to take a large stake at 18.

Now if the buyout is derailed in situation where the CFC stock rises above the offer price, the strategy should still work but you will have a gain on your hand off CFC stock which you may want to liquidate.

The bigger risk would be either BAC trying to get even cheaper or CFC going bankrupt before the buyout is closed. Its every investor’s judgement call but I personally feel comfortable that this is a minimal risk

Additionally, there doesn’t seem to be any antitrust implications.

]]> By: FFB http://www.arohanvalue.com/2008/01/31/the-best-way-to-buy-bank-of-america/#comment-60 FFB Wed, 06 Feb 2008 16:32:54 +0000 http://www.arohanvalue.com/2008/01/31/the-best-way-to-buy-bank-of-america/#comment-60 How much of risk is it that the buy-out doesn't get approved? This seems like a great idea though. I bought E-Trade at the end of the year with the thought that either it would bounce back or gt bought by a bigger fish. How much of risk is it that the buy-out doesn’t get approved? This seems like a great idea though. I bought E-Trade at the end of the year with the thought that either it would bounce back or gt bought by a bigger fish.

]]> By: Arohan http://www.arohanvalue.com/2008/01/31/the-best-way-to-buy-bank-of-america/#comment-55 Arohan Sat, 02 Feb 2008 18:21:39 +0000 http://www.arohanvalue.com/2008/01/31/the-best-way-to-buy-bank-of-america/#comment-55 Mike, these sort of anomalies are generally fleeting, although you are right that this one has existed for more than a few days now and the gap is shrinking quickly Love to have you here on this site! Mike, these sort of anomalies are generally fleeting, although you are right that this one has existed for more than a few days now and the gap is shrinking quickly

Love to have you here on this site!

]]> By: Mike Carpenter http://www.arohanvalue.com/2008/01/31/the-best-way-to-buy-bank-of-america/#comment-54 Mike Carpenter Sat, 02 Feb 2008 13:41:40 +0000 http://www.arohanvalue.com/2008/01/31/the-best-way-to-buy-bank-of-america/#comment-54 Great article. I wish it would have been earlier! Great article. I wish it would have been earlier!

]]> By: Arohan http://www.arohanvalue.com/2008/01/31/the-best-way-to-buy-bank-of-america/#comment-53 Arohan Sat, 02 Feb 2008 06:25:49 +0000 http://www.arohanvalue.com/2008/01/31/the-best-way-to-buy-bank-of-america/#comment-53 @forexdiscover: Glad you like it. Thanks for visiting and do keep your comments coming @mariam: You are welcome. Looks like the pricing anomaly is closing fast now @forexdiscover: Glad you like it. Thanks for visiting and do keep your comments coming

@mariam: You are welcome. Looks like the pricing anomaly is closing fast now

]]> By: mariam http://www.arohanvalue.com/2008/01/31/the-best-way-to-buy-bank-of-america/#comment-52 mariam Sat, 02 Feb 2008 03:43:21 +0000 http://www.arohanvalue.com/2008/01/31/the-best-way-to-buy-bank-of-america/#comment-52 Those are nice plays from the play book :) Thanks for laying it out with the pros and cons for us to mull over :) <em>mariam's last blog post..<a href='http://feeds.feedburner.com/~r/moneyrelations/~3/227221591/' rel="nofollow">Memories for money</a></em> Those are nice plays from the play book :) Thanks for laying it out with the pros and cons for us to mull over :)
mariam’s last blog post..Memories for money

]]> By: forexdiscover http://www.arohanvalue.com/2008/01/31/the-best-way-to-buy-bank-of-america/#comment-51 forexdiscover Fri, 01 Feb 2008 17:28:39 +0000 http://www.arohanvalue.com/2008/01/31/the-best-way-to-buy-bank-of-america/#comment-51 Interesting article. Cheers^^ <em>forexdiscover's last blog post..<a href='http://www.forexdiscover.com/forex-news/fed-cut-interest-rate-to-300-on-30th-january-2008' rel="nofollow">FED cut Interest Rate to 3.00% on 30th January 2008</a></em> Interesting article. Cheers^^

forexdiscover’s last blog post..FED cut Interest Rate to 3.00% on 30th January 2008

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