Whats your judgment on risks associated near buying Countrywide Financial for the Bank of America acquirement?
I would like to purchase Bank of America Shares as they steadily decline over the subsequent 3-6 months and hold them indefinatly. The recent buyout by Bank of America over Countrywide Financial proposes a unique opportunity for me to do this.What risks do you see to the share holders of countrywide facing if the hijack price has already be announced by both firms?
Ones I have identified are:
1) forgone B of A dividends until the close of the operate.
2) shareholder approval
3) government regulations
4) further decreasing of B of A stock values contained by comparison to CFC.
Other comments unrelated to the question but associated next to the deal are also meet.
Answers: There are risks to doing this besides the ones you have mentioned. One is that bank financials may continue to deteriorate during the subsequent 2 years or more. I don't know if you caught the latest release by American Express. Their credit card business is deteriorating. BAC is one of the largest credit card issuers contained by the U S and their custome base is not nearly so resourcefully healed as American Express's. Also BAC may be biting sour more than they can chew with Countrywide. Everyone said that Countrywide be not going to be affected by subprime problems because they did not issue subprime loans. Everyone be apparently wrong. I wonder just how wrong everyone might be?? This adjectives thing seem like a exceptionally risky proposition for BAC. It looks more like polite money chasing bad that a virtuous investment.
the real function boa bought countyrwide was for taxation reason.the tax losses of countyrwide would be work against against the profits of boa, and boa would pick up a good asset on the cheap. as a rule this would be good business logic. the problem is the u.s. discount and the u.s. stockmarket is going to fall further, and boa shares will topple as well. at hand will be a short term activate in the subsequent couple of weeks as interest rates fall, but afterwards the market will resume its downward move.my advice-be awfully patient. much longer than 3-6 months.you enjoy got the right company, and when this subprime mess settles,it will do completely very okay. the time frame to buy- at least a year and predictable closer to two years. there is a larger paradigm here than the nuts and bolts of a dedicated deal. the market are falling and the question you should be asking is this the time to be buying at adjectives. the obvious answer is no.continue till the dust settles and then buy low, and eventually go high.
Is at hand a source for spread sheet workable fundamental background and ratio on Canadian stocks?
Stock Guide provides this service but is very expensive. Are in that more reasonably priced reliable alternatives? Thx.Answers: Try the TSE (Toronto Stock Exchange) and the resources near:
http://www.tsx.com/
What happen to Countrywide stock?
If I'm holding some Countrywide (CFC) stock currently at a loss, what happens to it when Bank of America completes the purchase?Answers: $6.90 per share is what you take based on the Bank of America bid. Once the matter closes, they will take the shares out of your story and deposit the cash.
The Bank of America - CFC attainment is a stock for stock acquisition, which money that you (as a CFC holder) will be receiving stock within Bank of America not cash.
Upon the completion of the purchase of Countrywide Financial by Bank of America, respectively CFC shareholder will receive 0.1822 shares of Bank of America for each share of CFC they hold. For example, if you hold 100 shares of CFC you will receive 18 shares of CFC and the pro of the remaining portion (0.22) will be converted to cash and returned to you.