BofA Secondary Rumors Weighing (BAC)

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