s*****r
发帖数: 1745 | 1 Hysteria has hit Bank of America (BAC) shares, and the shorts are piling on
and doing everything they can to beat the bank into the ground. It's clear
the stock has been heavily attacked by shorts in recent weeks and the
volatility has become extreme for a major company. It looks like shorts are
feeding the rumour mill and have successfully scared many investors out of
the stock. It looks to have reached a level where the easy money has been
made by shorts and it's likely the shorts will need a whole lot more than
rumours and negative blogs to get the stock to take another leg down. There
is no question in my mind that a game is being played by hedge funds and
shorts who have used this stock for easy money profits in a fearful market
and done everything they can to play on investor emotions. How else did a
major U.S. corporation that passed rigid stress tests by the U.S. government
with many profitable lines of business, turn into the fear trade of 2011,
and see the stock drop by more than half in just 2 months?
I believe shorts quickly spotted an opportunity for a "perfect storm" attack
on BofA. A sudden convergence of fear from Euro debt issues, Euro bank
issues, a major market correction, people talking about Lehman and a big
recession, created the perfect opportunity for shorts to play their game on
BofA and shake out retail investors near financial crisis lows. I won't be
surprised if a couple of months from now BofA is once again talked up by
Wall Street and hedge funds as the turnaround story of the year. I expect
many of the shorts who started this bear raid to become long the stock and
ride it both ways, just as many did about two years ago. Remember the hedge
fund managers who made hundreds of millions buying BAC shares just as retail
investors gave it away in panic with huge losses? Sounds like history is
repeating now. At only $6 per share, it will be much harder for shorts to
keep fueling the rumour mill and without anything of substance soon coming
from shorts soon, BAC stock could see a "rip your face off" short covering
rally. The best way to play the bear raid in this stock is by recognizing
this as a classic buy the fear, buy low/sell high opportunity. Furthermore,
there are several steps BofA and/or the government could take soon to spark
a short covering rally and lift the stock from deeply oversold levels.
Warren Buffet or another key investor could announce a major investment
in the stock.
Ban short selling on financials like they just did in Europe. Many
investors believe that caused shorts to attack BAC shares.
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