Wednesday, January 24, 2007

Back up the truck

Two work-related stories:

1) Bank of America Corporation today reported that 2006 net income rose 28 percent to $21.13 billion from $16.47 billion a year earlier, reflecting both the addition of MBNA at the start of the year and organic growth in most major customer segments.

2) Bank of America on Wednesday said its board of directors authorized the repurchase of up to 200 million additional common shares, and will allow management to spend $14 billion over the next 12 to 18 months to buy back stock.

The stock price has hit a 52-week high near $54 and is still trading in the vicinity of that price based on continuing growth and profit expansion. Right now, it's at $52.70/share.

14 billion / 200 million = $70/share.

Nice math.

Meanwhile, Citigroup thinks that changing their logo will jumpstart earnings and a sluggish stock price.

Riiiiiiiiiiiight.

Just wait until we buy Barclays.

2 comments:

paul zummo said...

Is the reason that it takes four days for my online bill pay from BoA to CitAssist because they're rivals? Boo.

Francase said...

No, that would be because Citi sucks donkey balls.

It only takes us one day to send it out to other banks, so I guess they're trying to pilfer the overnight interest for three days on the payment.

Because they suck.