Monday, November 8, 2010

MSCO positve on BAC

Bank of America (BAC.N) 
 Research Tactical Idea 
 We believe the share price will rise in absolute terms over the next 60 days. 
 Catalysts are 1) Maine State lawsuit dismissed on Nov 4 (highlighting difficulty of private investors to submit 
 reps/warranties cases), which we do not believe is yet reflected in the stock price; and 2) improving credit in master trust 
 (next released on November 15th), with NCOs down 174 bp in Sept and total delinquency rates down 230 bp from peak 
 and continuing to improve.
[07:42] ben3092000:  We estimate that there is about a 70% to 80% or "very likely" probability for the scenario. 
 Estimated probabilities are illustrative and assigned subjectively based on our assessment of the likelihood of the 
 msco on BAC

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