BofA Secondary Rumors Weighing (BAC)
Bank of America Corporation (NYSE: BAC) was doing very well earlier and it hit $10.00 for the first time since August 1, 2011 earlier this morning. That was before the sell-off. While Bank of America trades at a handy discount…
Now there are rumors that the bank is going to conduct a large secondary offering. Again, these are just trading desk rumors as of now. If this is true, it sort of flies against what the bank has been saying about its finances. That would also lower its book value per share, at least on a static basis. The bank already got a Warren Buffett endorsement for the preferred shares and that did not help the stock for a while.
If this is true, it may have some investors wondering why they chased BofA shares up as a double from the December lows. BofA shares are down 2.6% at $9.55 on more than 600 million shares.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
