Trimmed my position in Bank of America at 15. I still hold a small amount of shares in BAC but I think that a better entry point may arise over the next few weeks. An analyst at Friedman, Billings and Ramsey placed a $9 price target on BAC and thinks that they may need to raise even more capital. BAC has already received $25 billion from the Treasury and raised $10 billion in a stock offering. Recently, BAC issued an additional 8.1 billion in debt. I normally don’t pay too much attention to analysts opinion but for financial stocks I do. Financial stocks have such difficult balance sheets to understand that I do rely on analysts opinion. It appears that BAC is diluting the stock by borrowing so heavily. I figure that I can get in cheaper after the next capital raise.
