Did Apple's Slide Just Blow Up Dick Bove's Employer?
And it was shaping up to be a slow news days. From Bloomberg:
- ROCHDALE SAID TO SEEK CAPITAL INJECTION AFTER TRADING ERROR
- ROCHDALE EXECUTIVES SAID TO TIE CAPITAL SHORTAGE TO APPLE TRADE
- ROCHDALE SECURITIES ANALYSTS INCLUDE DICK BOVE
By that logic, can one imagine the epic bailout Rochdale would need if Bank of America trades back to its rightful price well over 50% below current levels? Also, why is Rochdale trading on its own account? According to an unverified rumor, a Roch trader was supposed to be buying 125 shares every half hour, and instead bought 125,000. If correct, oops: that's a $74 million margin call.
Finally, the question of the day: How many more funds will claim they bought AAPL due to an "error" and now need a bailout?
* * *
And completely unrelated, here is Dick Bove's recommendation history on Bank of America while at Rochdale. Sadly, Bloomberg doesn't keep track of his recosat his previous employers. They were more of the same from the analyst who in March of 2008 said it was a "Once in a Generation Opportunity to Buy Bank Stocks.” A few weeks later the market was down about 40%.