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Saturday, October 1, 2011

BAC A Warrant Idea: (1) Greenblatt, (2) Berkowitz, (1) BAC A Warrant summary

I've decided to link 4 documents.
(1) An excerpt of "You Can Be a Stock Market Genius" where Greenblatt describes his reasoning for buying LEAPs on Berkowitz's analysis 
(2) The original analysis Berkowitz made on Wells Fargo that Greenblatt based his analysis on.
(3) Berkowitz's analysis of Bank of America, June 1, 2011 AAII conference 
(4) The details of the Bank of America class A warrants.


Warning: Just because Berkowitz was right on Wells Fargo in the 1990s doesn't mean he will be right about BAC this time around. The risks associated with Bank of America is centered around litigation. Also, I believe the warrants are currently "expensive", it might be better to own long term call options. I might sell some of my warrants to purchase new Jan 2014 call options when they come out.

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