Bank of America: Buffett Premium All Gone, and Then Some

http://blogs.wsj.com/marketbeat/2011/09/06/bank-of-america-buffett-premium-all-gone-and-then-some/?blog_id=15&post_id=37254&mod=igoogle_wsj_gadgv1

Bank of America shares are trading at $6.90 before the opening bell. That’s eight cents below their value the night before Warren Buffett rescued America.

Update: After the opening bell, Bank of America shares are down nearly 6% to $6.83, down from $6.99 the night before the Buffett Rescue.

Maybe he’s got another spare $5 billion laying around?

The stock traded as high as $8.80 the day after Mr. Buffett’s investment. Given that Mr. Buffett has warrants to buy BofA stock at $7.14, that was a nice paper gain for the Oracle. That’s all gone now.

At the moment, Mr. Buffett, who came up with the idea to invest in BofA while sitting in the bath, seems to be taking another bath (John Shipman said it first) on this investment.

And those who rushed out to buy up BofA common stock after Mr. Buffett’s investment are in even worse shape.

This has all happened before, as we’ve mentioned, with Mr. Buffett’s in-case-of-emergency investments in Goldman Sachs and General Electric back in the dark days of 2008. Both stocks enjoyed a brief pop, only to fall back into the abyss.

Mr. Buffett eventually made money on those investments, as he is prone to do, and may yet make money on BofA. But it will be no trip to Dairy Queen.

Buffet makes moeny on EVERYTHING, BofA wont be different, he just sees a good time to jump in and make some money in the future. remember Buffet is in it for the long haul and so should you and I

Now is the time to leverage up. Think about this in 2008 when the world was de-leveraging if you did the opposite how would have you did? Financials have had the crap kicked out of them. I think there is nothing wrong with BofA, have you seen the fees they charge there customers? You could benefit by the sector rotation out of tech to the beaten down financials with the leveraged ETF FAS.