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With Great Regret Stifel Nicolaus Informs Clients It Had To Downgrade Bank Of America To Hold

Tyler Durden's picture




 

Hilarious: "We are downgrading BAC to Hold from Buy. Sadly, this action goes against our better fundamental analysis/judgment especially after the company reported 3Q10 results that we believe were better than many feared. Does the fact the company is trading at 90% of reported tangible book value of $12.91 matter? It should, in our view. But, unfortunately it doesn’t – at least not right now." In other words, "unfortunately" the sellside ponzinomics model is breaking down when the rule of law has to be followed. How "sad" indeed.

 

 

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Wed, 10/20/2010 - 09:35 | 663916 Dismal Scientist
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Book value, my ar*e. Noone knows what the book value of this turkey is. All we can say with confidence is that its a lot lower than reported.

Wed, 10/20/2010 - 09:58 | 663968 the rookie cynic
the rookie cynic's picture

No mark-to-market, therefore, book value equals "whatever the hell I say it is."

Wed, 10/20/2010 - 10:55 | 664141 sumo
sumo's picture

If you mark to magic playground storybook value, BoA looks A-OK.

Wed, 10/20/2010 - 09:35 | 663917 MrTrader
MrTrader's picture

What a bunch of a$$ licking ANALysts..."Sadly" ??????

Wed, 10/20/2010 - 10:55 | 664142 MarketTruth
MarketTruth's picture

Agreed, yet i feel it is more like:

Financial cocaine is a hell of a drug.

Wed, 10/20/2010 - 09:36 | 663918 mohadiep
mohadiep's picture

"Sadly" my ass!

Wed, 10/20/2010 - 09:56 | 663963 Bob
Bob's picture

WTF?

Sadly we have to tell the truth just this once . . . sorta, kinda at least?

There will be a special place in hell for these sensitive types. 

Wed, 10/20/2010 - 09:36 | 663919 cossack55
cossack55's picture

My own sadness will be further deepened with the downgrade of JPM to either criminal RICO scum or financial terrorist, whichever occurs first.  I will need to treat my dispair with some Dom.

Wed, 10/20/2010 - 09:39 | 663929 Jake Green
Jake Green's picture

perpetual ass rape by bankers is sad too

Wed, 10/20/2010 - 09:37 | 663922 toolgravy
toolgravy's picture

Since when does emotion factor into analysis?

Wed, 10/20/2010 - 09:38 | 663924 Cognitive Dissonance
Cognitive Dissonance's picture

This "sad" report is simply the public confirmation/affirmation of the many private phone calls made to "important" clients last week. CYA after the fact.

Wed, 10/20/2010 - 09:38 | 663928 Village Idiot
Village Idiot's picture

Ok there, Stifel.

Wed, 10/20/2010 - 09:39 | 663930 Turd Ferguson
Turd Ferguson's picture

What classic douchebag sellside nonsense!!!

This type of attitude is just another cause of the 25-week public exodus from the "market".

Wed, 10/20/2010 - 10:47 | 664110 SheepDog-One
SheepDog-One's picture

Right, and a few weeks ago all the rage on CNBS was 'How do we rebuild investor confidence in the pirate marketplace'? Sure as hell NOT like THIS!

Wed, 10/20/2010 - 13:28 | 664616 faustian bargain
faustian bargain's picture

It's interesting how vehement that guy is, in stating how unthinkable it would be for people to rise up in violence against Fed policy.

IMO, he actually rather agrees with ZH's assessment, but just wants to cover his ass while pointing people to the website.

Wed, 10/20/2010 - 09:48 | 663937 sweet ebony diamond
sweet ebony diamond's picture

Also in the BAC report:

"However, if I really suck hard enough, I may be in line for a BAC job. So all is not lost."

Edit: My response to the Time guy is similar.

 

Wed, 10/20/2010 - 09:46 | 663943 Pladizow
Pladizow's picture

11 months ago Bob Chapman discussed BAC being used like a tampon.

http://www.youtube.com/watch?v=trLcH868ld4

Wed, 10/20/2010 - 10:30 | 664052 Rusty Shorts
Rusty Shorts's picture

Jim Willy claims that Bank of America failed two months ago, and has been covered up.

 

I believe it's in part two of this 3 part Max Keiser report.

Part 1

http://www.youtube.com/watch?v=GZ2swdKWbHE

 

 

Wed, 10/20/2010 - 09:51 | 663944 firstdivision
firstdivision's picture

<OT>Woohoo, look at the market go.  Up almost 1% on absolutely nothing.  POMO hasn't even started yet.  This is a magical day indeed, Harry Bernanke must be proud. </OT>

Steifel, how does it feel to be far behind the curve?  When are the layoffs going to begin?

Wed, 10/20/2010 - 10:49 | 664115 SheepDog-One
SheepDog-One's picture

Up across the board on Morgan Stanley bloodbath and mortgage applications down 10.5%? Truely magical marketplace, and they can keep it!

Wed, 10/20/2010 - 09:47 | 663945 Internet Tough Guy
Internet Tough Guy's picture

We weep for thee, BofA. Cut down in the prime of your fraud, so young, so mendacious, so full of avarice.

Wed, 10/20/2010 - 09:47 | 663947 Cdad
Cdad's picture

Unbelievable selling in BAC.  That is going to leave a mark.  It is only a matter of time for the rest. 

Prepare for the next crisis brought to you, again, by the f'n banking sector.  Surprise surprise...

Wed, 10/20/2010 - 09:49 | 663949 firstdivision
firstdivision's picture

People are selling BAC to buy everything else under the Sun with leverage. 

Wed, 10/20/2010 - 10:16 | 664005 Cdad
Cdad's picture

Really.  That "they are selling BAC" is clearly visible.  The buying of everything else with leverage...well, that sounds like your hope. 

They aren't buying Apple this morning.  They aren't buying gold.  They aren't buying solar.  They aren't buying oil.  No micro chips.  Buying...nothing that I can see yet.  No JPM.  No GS.  I see some buying in Boeing...but...you know...that is ONE company.

So why do you post that?  You sound like a weak market long.  You will prove that by disappearing from this board in the next ten minutes.  The SPY  topped out...and is broken, to boot. 

Good luck with your "buy everything else with leverage" call.  Sounds stupid to me especially as the banks go down in flames.

Wed, 10/20/2010 - 10:32 | 664041 firstdivision
firstdivision's picture

http://dictionary.reference.com/browse/sarcasm Read it and study it. 

 

If you have been here longer than 5 minutes you would see my posts where I have said that I have been buying far dated OTM puts.  Also, do not believe for a second that this POMO will be small by any account, so it will be an up approx 1% EOD, barring any armageddon news.  But I guess that would sound stupid to you as well. 

Wed, 10/20/2010 - 10:42 | 664091 Cdad
Cdad's picture

You are partly correct.  I have no opinion on the POMO, large or small.  You might be right on that, you might be wrong...and I am in the dark there.

I do, however, believe buying OTM puts is stupid. 

As for "armageddon news" that has already made the paper...so I'm not sure what news you are waiting to hear.

But I was wrong...you have not left in the 10 minute window.  So we shall just see from here.

 

Wed, 10/20/2010 - 10:51 | 664127 firstdivision
firstdivision's picture

Well EOD may close closer to unch unless the movement in the AUDJPY starts to support this POMO rally..which so far it is not.

Wed, 10/20/2010 - 09:50 | 663950 TooBearish
TooBearish's picture

Tangible book - when 70% of assets are MARKED TO MODEL (fantasy)....hahahahaa what a farce...

Wed, 10/20/2010 - 09:51 | 663951 Gubbmint Cheese
Gubbmint Cheese's picture

Can't wait for the fecal spray of this shit storm to hit Dimons precious JPM.... That overly smug lying sack of douche.. And WFC so I can tell Munger to suck it up.. Hey charlie.. Your forehead smells like warrens balls. Assholes.. The lot of them.

Wed, 10/20/2010 - 09:56 | 663954 sethco
sethco's picture

This apologetic drivel passes for 'analysis'?

Bank stocks being pumped right now, BTW (other than BofA). Give it time...

Wed, 10/20/2010 - 09:52 | 663955 the not so migh...
the not so mighty maximiza's picture

Sadly I would disagree and upgrade it to "dump"

Wed, 10/20/2010 - 09:52 | 663956 shushup
shushup's picture

So it's front running the POMO this morning - never gets old does it?

Wed, 10/20/2010 - 09:55 | 663960 Dr. Engali
Dr. Engali's picture

 Sadly how can you have book value when the books are cooked?

Wed, 10/20/2010 - 09:56 | 663961 John McCloy
John McCloy's picture

This makes zero sense. Last night Brian Kelly on Fast Money was telling me he was buying and some other smiley suit was saying BAC is going to 16.00
What was the premise for their investment?
"The fed has not come so far to not support the banks"
More proof the markets now live and breathe by what Ben had for dinner last night. What could possibly go wrong.

Wed, 10/20/2010 - 09:59 | 663970 Whatta
Whatta's picture

sellside ponzinomics model

 

LOL. "ponzinomics"....I can't wait to work that into a conversation today.

And, get with the program. CNBC told me at least twice this AM that equities will be up at least 20% over the coming year or two. Yippee, I am going to be rich buying houses and bank stocks.

Wed, 10/20/2010 - 10:03 | 663971 Spalding_Smailes
Spalding_Smailes's picture

Bank of America is getting destroyed right now, wait till another rmbs bomb is dropped on JPM/Citi/? ....

The markets can't hide this for long. BoA may be out of business by monday.

They can not sell another bank bailout no way ...

Wed, 10/20/2010 - 10:34 | 664065 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Merge with the FED, catchy new name: Federal Reserve Bank of America ...

Still odd that the FRBNY is in on this. The complaint (posted by Ritholtz) actually reads that BAC was dragging its feet on foreclosures and thereby earning more service fees then is expected in the quid pro quo. So is the FRBNY trying to expedite foreclosures? Also, BlackRock is in on the complaint but BAC owns about half of BlackRock ...

All very convoluted, maybe the sharks are turning on each other or maybe this is more agit-prop designed to bring the MERS / REMIC debacle to a head in the courts and the endgame there is already decided ... Andy Grove anyone?

Wed, 10/20/2010 - 19:42 | 665596 Buck Johnson
Buck Johnson's picture

You are correct, that is what I've been saying for awhile now.  They are trying to say it was just B of A but other institutions securitized also.  And once you start the ball rolling, it continues to roll and it's hard to stop it.  JPM may be next or CITI or another, but one thing is clear.  The investors and the lawyers and the people smell blood in the water and they are going after them.

Wed, 10/20/2010 - 10:01 | 663972 Hondo
Hondo's picture

This firm is incredibly stupid......I mean give me a break.....do they really actually know what the value of the assets on their books are worth....the answer is absolutely no and if they say they don know.......their lying!!  Anyone making a recommendation on banks based on fundamental value is lying....period.  Most banks are worthless ponzi's at best and if it weren't for the $250,000 taxpayer insurance they would have zero deposits.

Wed, 10/20/2010 - 10:02 | 663974 A Man without Q...
A Man without Qualities's picture

"hold" is the clever term when the mean the share price is going to fall about 20%...  but you have to be an player to understand this..

Wed, 10/20/2010 - 10:12 | 663991 Village Idiot
Village Idiot's picture

"Hold"    Hold my cock - it should be "buy" or "sell"

Wed, 10/20/2010 - 10:20 | 664019 snowball777
snowball777's picture

They need a new "dump like a fissile isotope" rating.

Wed, 10/20/2010 - 10:04 | 663976 Village Idiot
Village Idiot's picture

Just the messenger - Bloomberg reports "Goldman analysis suggests that, after tax loss to BAC could be 12 billion." Bloomberg also suggests that "based on the recent drop in share price (17%) the loss may already be priced in."  We'll see.  They used that fancy touch screen to display the data, so I tend to believe them.

Wed, 10/20/2010 - 10:10 | 663988 Spalding_Smailes
Spalding_Smailes's picture

Do they think this will be the only pushback? The european investors, the state/union pension's do they have lawyers?.... What about the court cost ? The selling is massive in the first hour....

I was reading about Lehman going under for weeks before that happened everyone telling me to buy the dip.....

BoA is finished ...

Wed, 10/20/2010 - 10:19 | 664012 MilleniumJane
MilleniumJane's picture

I wonder what the BoA Board of Directors did

to piss the elite off?  I get this nagging feeling that they are being set up to be the sacrificial lamb/peace offering to an increasingly enraged public.  I hope it doesn't work.  All of the banksters must go down.

Wed, 10/20/2010 - 10:22 | 664023 snowball777
snowball777's picture

Doesn't the interweaving of CDS exposure pretty much guarantee one TBTF for all?

Wed, 10/20/2010 - 10:24 | 664028 Fearless Rick
Fearless Rick's picture

Charlie Munger and Warren Buffett are at a bar having a few.

Buffett: Hey, Charlie, what do you get when you put nuts on a wall?

Charlie: I dunno.

Buffett: Walnuts. What to you get when you put nuts on your chest?

Charlie: Uh, I get it. Chestnuts.

Buffett: OK, what do you get when you have nuts on your chin?

Charlie: Huh? Chin nuts?

Buffett unzips his fly and sticks his cock in Charlie's mouth. Laughing, he says, no, cock in mouth.

Wed, 10/20/2010 - 10:31 | 664051 Spalding_Smailes
Spalding_Smailes's picture

And then pulls his limp member out of said mouth and says ... "Thats how you do it, now go see ben first, then ..."

Wed, 10/20/2010 - 10:35 | 664050 Unlawful Justice
Unlawful Justice's picture

Gods of war

http://www.youtube.com/watch?v=8ptOP0UrnJU

count down to zero.......

Wed, 10/20/2010 - 10:34 | 664064 mtremus
mtremus's picture

"We are downgrading BAC to Hold from Buy.

Wall Street speak for SELL

Wed, 10/20/2010 - 10:42 | 664095 Rusty Shorts
Rusty Shorts's picture

"Hold from Buy" is like Newspaper speak for "Tragedy", which means "funny as hell".

Wed, 10/20/2010 - 10:41 | 664087 Pez
Pez's picture

I hear the next financial instrument to save BoA will be yesterday's discarded OTB slips blended 90-10 with MBS. Can I put you down for 500 Billion, China?

Wed, 10/20/2010 - 10:45 | 664104 mtremus
mtremus's picture

Hey I'm all in

Wed, 10/20/2010 - 10:45 | 664103 lamont cranston
lamont cranston's picture

The Charlotte NBC affiliate (WCNC) had a breakdown on how much BAC was losing per time period last night on the 5:30 nooz.

$962.41. Per minute. We laughed our asses off.

That's $57,744.60/hour.

I'm raising my hourly rate.

Wed, 10/20/2010 - 11:51 | 664338 jc125d
jc125d's picture

Downgrade that shit to R for Roadkill. Scrape it off the highway, grind it up and make burgers for the cafeteria on 1111 Constitution Avenue Northwest, Washington D.C. 20004 and the Capitol. Eat your own cooking, a-holes. 

Wed, 10/20/2010 - 13:05 | 664555 Bartanist
Bartanist's picture

Hypocrisy and irony as the emperor and his entire court of jesters, fools and general sycophants are revealed to be naked and embroiled in a massive last gasp orgy.

Sat, 11/13/2010 - 08:28 | 724508 mark456
mark456's picture

Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic.
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