32 replies to this topic

[Frank12]

I got bored. Like REALLY bored. So I started looking at stocks. and one stock I have purchased and sold in the past was HIG. HIG is Hartford Financial Service Group Inc. dubbed The Hartford. I previously invested in HIG when it dropped to 3.96 a share, very low, as the stock previously sold for 40+ So i bought 3000 shares, costing me roughly 12k. My college/birthday/savings. It paid off. The stock turned, went to 30 a share ( i sold at 25) and i made 63k roughly. Nice huh. Well, I didnt make this board to brag.

See, I got bored and started browsing some back history on the stock. I learned that HIG just hired someone named Liam E. McGee as CEO. I did a little research, found out he was the former President of Small Business and Consumer departments at Bank of America (which will now be referred to as BAC). This struck me as a little fishy, but i didnt act upon it. Instead, I looked at HIG, seeing it being ethical and such, seeing it rated highly by most stock trading sites, either as a hold or buy stock. (which means it is on an upswing). So i started putting around and i saw something that caught my eye. I went to forbes.com and saw that Liam E. McGee is making 375k a year! Kinda odd to be a CEO of a major insurance company, a company paying some DIRECTORS in excess of 6 million.

So, i went back to Bank of America. It turns out that in 2009, Wikileaks apparently had some dirt on BAC. BAC went frantic, and ended up attacking Wikileaks by attempting to hack them, as well as partner with Paypal and other companies in contact with the owner of wikileaks to attempt to freeze their money, which would stop the ability to post the info. I then started looking at some high ranking employees of BAC. The current Pres. of Consumer and Small Buisness departments is currently making 6.51 mil. In addition, many of them have increased income based on what forbes and many other sites label as "Other Compensation". Also, Liam E. McGee left BAC a few months after he wikileaks report, to go to a different company and make 1/20 the amount he made before.

This prompts to think that he knew something was wrong. In addition. over the last 4 months, BAC has been investigated for breach in fiduciary duties by directors and officers. They also were found to have lied about their multitudes of debt, and falsely inflating their own stock to 19.48 per share. Now can someone please understand why i think bank of america is so fucking dumb? If a fucking 18 year old on his laptop can go on public websites, and find evidence that BAC is fraud, why the fuck arent the people dumping money into this stock doing the same. I did this in around 3 hours. Ironically, NASDAQ is still rating BAC as a strong buy. Now i know why the fucking market crashed in 08'. yea, the banks might have given stupid loans and shit, but if all this fucking info is out there, the people on the other end of the bonds being shorted were so dumb they shouldn't have been able to handle the money in the first place. I'm still at a loss here. Someone please correct me if im wrong.

BTW, if this board violates any board restrictions, please take it down. I read the post rules, but as far as i know, im just posting info on a company, public info. If im in the wrong forum, please move me as well. Thanks. Please post feedback, id appreciate your thoughts.


--Wall of text edit--JC

[Kido]

whoa. Somewhere in the middle the lines just merged together Might wanna try paragraphing...

[Frank12]

my computer refuses to let me. At least on this board.

[CocaKola]

I got bored. Like REALLY bored. So i started looking at stocks. and one stock i have purchased and sold in the past was HIG. HIG is Hartford Financial Service Group Inc. dubbed The Hartford. I previously invested in HIG when it dropped to 3.96 a share, very low, as the stock previously sold for 40+ So i bought 3000 shares, costing me roughly 12k. My college/birthday/savings. It paid off. The stock turned, went to 30 a share ( i sold at 25) and i made 63k roughly. Nice huh. Well, i didnt make this board to brag.

See, i got bored and started browsing some back history on the stock. I learned that HIG just hired someone named Liam E. McGee as CEO. I did a little research, found out he was the former President of Small Business and Consumer departments at Bank of America (which will now be referred to as BAC). This struck me as a little fishy, but i didnt act upon it. Instead, i looked at HIG, seeing it being ethical and such, seeing it rated highly by most stock trading sites, either as a hold or buy stock. (which means it is on an upswing). So i started putting around and i saw something that caught my eye. I went to forbes.com and saw that Liam E. McGee is making 375k a year! Kinda odd to be a CEO of a major insurance company, a company paying some DIRECTORS in excess of 6 million.

So, i went back to Bank of America. It turns out that in 2009, wikileaks apparently had some dirt on BAC. BAC went frantic, and ended up attacking Wikileaks by attempting to hack them, as well as partner with Paypal and other companies in contact with the owner of wikileaks to attempt to freeze their money, which would stop the ability to post the info. I then started looking at some high ranking employees of BAC. The current Pres. of Consumer and Small Buisness departments is currently making 6.51 mil. In addition, many of them have increased income based on what forbes and many other sites label as "Other Compensation". Also, Liam E. McGee left BAC a few months after he wikileaks report, to go to a different company and make 1/20 the amount he made before.

This prompts to think that he knew something was wrong. In addition. over the last 4 months, BAC has been investigated for breach in fiduciary duties by directors and officers. They also were found to have lied about their multitudes of debt, and falsely inflating their own stock to 19.48 per share. Now can someone please understand why i think bank of america is so fucking dumb? If a fucking 18 year old on his laptop can go on public websites, and find evidence that BAC is fraud, why the fuck arent the people dumping money into this stock doing the same. I did this in around 3 hours. Ironically, NASDAQ is still rating BAC as a strong buy. Now i know why the fucking market crashed in 08'. yea, the banks might have given stupid loans and shit, but if all this fucking info is out there, the people on the other end of the bonds being shorted were so dumb they shouldn't have been able to handle the money in the first place. I'm still at a loss here. Someone please correct me if im wrong. BTW, if this board violates any board restrictions, please take it down.

I read the post rules, but as far as i know, im just posting info on a company, public info. If im in the wrong forum, please move me as well. Thanks. Please post feedback, id appreciate your thoughts.

There ya go.
Also fixed some typos for ya.

[Noitidart]

Congrats on your 63k sale.

And yeah man if he left to make 1/20th something is really up. BofA was messed up to try and hack, anyone. Were they successful?

[Connery]

There ya go.
Also fixed some typos for ya.

You have the patience of a saint. =/

[Frank12]

Noit- as far as ik, wikileaks hasnt posted anything on BofA yet.

[Kat]

I'm wondering why you're surprised at this. Of course there's shady shit going on.. But hey just like you did, everyone's just out to make a quick buck. That's my two cents

[Connery]

I'm wondering why you're surprised at this. Of course there's shady shit going on.. But hey just like you did, everyone's just out to make a quick buck. That's my two cents

I didn't know how to coherently type up my response, so you did it for me -- thank you. +1

[Frank12]

Hmm...let me put it in from a financial standpoint. As ive shown, BofA is corrupt, more or less. If wikileaks has shit and posts it, i can literally bet the stock will drop exponentially, based on the fact that its already tarnished as it is, because of tax payer paid bailout. So i can potentially buy "put options" on this stock, at lets say 15$ a share. If the stock drops less than 15$ i can sell at 15 because of the option. The most i can lose is the premium, which in this case would prolly be 50$ per option (100 shares). So if i bought 10 options, id pay 500$ in premiums. Thts the most i can lose. But if the stock drops to 5$ per share, i make 10k$. SEE?

25 User(s) are reading this topic 6 members, 19 guests, 0 anonymous users who the fuck are these 19 guests lol? watch BofA stock drop tomorrow lol

[zevrom]

I stoped doing stocks not too long ago.. had to stop there way to annoying

[Unseen]

There ya go.
Also fixed some typos for ya.

Fuuu- I went and read the hard version. But yeah welcome to how screwed up monetary life can be when fractional reserve is allowed to operate...

Edit:I'm poor at grammar.

Edited by Unseen, 13 February 2011 - 08:53 PM.

[esilim]

One of the problems of our financial system is that people do not invest based upon the fundamentals of a company, or because they believe in the product or what the company is doing... they just "play" the market now...

[jcrdude]

All in favor of me editing in the pretty version from CocaKola? It's a simple copy/paste job... XD

(In particular, I'm looking for Frank's thumbs-up on this one)

[Frank12]

@esilim - unfortunatly, the market is based on perception. On the other hand, since BofA is such a well known stock, any harmful news that hits public media can drop the stock. The problem is, the media has other fish to fry as opposed to a hunch, which can be credible, on BofA. But if anything leaks about BofA, you can bet more will follow, and in turn stock will drop. JCRboy, if you see something tht needs fixing, be my guest.

[jcrdude]

tl;dr

If you don't want to take the time to read the post, then why bother taking the time to reply at all?

Post invisied and post count dropped by 1.

[rizler]

never really done stocks and it seems you have made a nice profit in the past
as of your problem hope someone sorts it out for you only indepth research can really answer your questions

[WharfRat]

Interesting read and a very well thought out post.

But I have a few questions that I hope you can explain to a guy who isn't well versed in the stock market... My question really pertains to the part where you were discussing taking options on BoA stocks. What did you mean? What I interpreted was that you were saying you could basically take out "insurance" against BoA at $50 per option... and if the stock dropped below $5/share, you would make $500/option.... sort of like gambling on the company?

Did I interpret that fairly? My other question is that, provided what I said was accurate, do you also not have motivation in seeing the stock plummet and to tarnish the reputation of the company?

I doubt that the fed govt. will let the prices drop that low without another bailout... so idk if it's a good investment or not... but a very interesting post, none the less.

As to the corruption over at BoA, I'm sure it is full of it. They're shitting their pants hoping Assange doesn't manage to release the files on them...

I'd really like you to clear up this whole options thing, though... I may be interested in purchasing some options myself.

[Random]

One of the few posts I've seen on Codex in months that is actually intelligent and well thought out.
Too bad so many people put general replies that had no real relevance in this topic.

I wouldn't buy put options on the stock myself. Sure, it's a low risk investment but BAC is trending upwards right now. Unless something bad happens, it is going to keep rising upwards since the economy is slightly improving. I doubt the government is going to let anything happen to their stock prices just as we are inching our way into a positive economic setting. Albeit, if Wikileaks has anything to do with BAC information, the government won't have any say in what happens to the stock prices.

I just wouldn't invest in BAC at all right now

As for put options and call options (for those who don't know about them.)

Paying a premium for a put option means that regardless of what happens, your stocks have to be bought back for whatever price they were when you bought the put option. So if the price drops you can sell the stock for price it was when you paid the premium. If it rises, then you can just sell it at market price.

Call options are basically the opposite of put options. The premium you pay allows you to buy the stocks at whatever price the share was at when you bought the option. So if the price increases you can just buy the stock at the lower price, and instantly resell at the higher price.

[WharfRat]

One of the few posts I've seen on Codex in months that is actually intelligent and well thought out.
Too bad so many people put general replies that had no real relevance in this topic.

I wouldn't buy put options on the stock myself. Sure, it's a low risk investment but BAC is trending upwards right now. Unless something bad happens, it is going to keep rising upwards since the economy is slightly improving. I doubt the government is going to let anything happen to their stock prices just as we are inching our way into a positive economic setting. Albeit, if Wikileaks has anything to do with BAC information, the government won't have any say in what happens to the stock prices.

I just wouldn't invest in BAC at all right now

As for put options and call options (for those who don't know about them.)

Paying a premium for a put option means that regardless of what happens, your stocks have to be bought back for whatever price they were when you bought the put option. So if the price drops you can sell the stock for price it was when you paid the premium. If it rises, then you can just sell it at market price.

Call options are basically the opposite of put options. The premium you pay allows you to buy the stocks at whatever price the share was at when you bought the option. So if the price increases you can just buy the stock at the lower price, and instantly resell at the higher price.

Thanks for the info Random!

I wish I had more money to invest... Definitely will be interesting to see how it plays out... You guys have any good stock related websites that I could visit?

[Random]

Thanks for the info Random!

I wish I had more money to invest... Definitely will be interesting to see how it plays out... You guys have any good stock related websites that I could visit?

I get most of my information from Yahoo Finance, CNN Money, and the Wall Street Journal. They should set you up well.
A lot of stock information is common sense applied to knowledge about upcoming company projects and releases.


Always remember to look into your stocks deeply. I thought that investing in Verizon around now would be a good idea because the iPhone was coming out. When I looked more into it I realized that it wasn't because Verizon was spending so much money on their network. So even things that you think may be really good investments may turn out not to be.

Lots of IPOs in coming months. Linkedin and Groupon are two stocks to watch out for.

[WharfRat]

I get most of my information from Yahoo Finance, CNN Money, and the Wall Street Journal. They should set you up well.
A lot of stock information is common sense applied to knowledge about upcoming company projects and releases.


Always remember to look into your stocks deeply. I thought that investing in Verizon around now would be a good idea because the iPhone was coming out. When I looked more into it I realized that it wasn't because Verizon was spending so much money on their network. So even things that you think may be really good investments may turn out not to be.

Lots of IPOs in coming months. Linkedin and Groupon are two stocks to watch out for.

I'm a little hesitant about Groupon after their superbowl ad... In fact, I was a bit disgusted and don't think I could invest in them for that reason alone.

So would a "call option" be something good to use on a stock that you presume will only go up in time then? How frequently do you have to pay the premium? Say if you do buy at that lower price and resell, does your call option like go away? Or can you continue to buy at that lower price for a long time?

Oh yeah... a final question; How much spare money do you really need in order to invest? I certainly don't have a lot of money right now... but I'd like to know for in the future at what point I should start to invest...

[Unseen]

One of the few posts I've seen on Codex in months that is actually intelligent and well thought out.
Too bad so many people put general replies that had no real relevance in this topic.

I wouldn't buy put options on the stock myself. Sure, it's a low risk investment but BAC is trending upwards right now. Unless something bad happens, it is going to keep rising upwards since the economy is slightly improving. I doubt the government is going to let anything happen to their stock prices just as we are inching our way into a positive economic setting. Albeit, if Wikileaks has anything to do with BAC information, the government won't have any say in what happens to the stock prices.

I just wouldn't invest in BAC at all right now

As for put options and call options (for those who don't know about them.)

Paying a premium for a put option means that regardless of what happens, your stocks have to be bought back for whatever price they were when you bought the put option. So if the price drops you can sell the stock for price it was when you paid the premium. If it rises, then you can just sell it at market price.

Call options are basically the opposite of put options. The premium you pay allows you to buy the stocks at whatever price the share was at when you bought the option. So if the price increases you can just buy the stock at the lower price, and instantly resell at the higher price.

Can you get both options at once, and are all stocks available for said insurance like plan?

[Random]

I'm a little hesitant about Groupon after their superbowl ad... In fact, I was a bit disgusted and don't think I could invest in them for that reason alone.

So would a "call option" be something good to use on a stock that you presume will only go up in time then? How frequently do you have to pay the premium? Say if you do buy at that lower price and resell, does your call option like go away? Or can you continue to buy at that lower price for a long time?

Oh yeah... a final question; How much spare money do you really need in order to invest? I certainly don't have a lot of money right now... but I'd like to know for in the future at what point I should start to invest...

Yeah that did create a lot of controversy. I'm sure someone on marketing got fired.
However, I don't relate ethics to business and don't really care about anything besides profit.

Yes you've got the right idea with a call stock. However, I didn't fully explain it because I didn't explain strike prices and such. I don't have the time right now I'm sorry.
It really depends on the stock because the strike price and premium price have an inverse relationship.

It really doesn't matter how much money you have to invest. The more you have, the bigger your profit will be.

[WharfRat]

Yeah that did create a lot of controversy. I'm sure someone on marketing got fired.
However, I don't relate ethics to business and don't really care about anything besides profit.

Yes you've got the right idea with a call stock. However, I didn't fully explain it because I didn't explain strike prices and such. I don't have the time right now I'm sorry.
It really depends on the stock because the strike price and premium price have an inverse relationship.

It really doesn't matter how much money you have to invest. The more you have, the bigger your profit will be.

I understand man... If you find the time to explain it to me a little better sometime this week, please do shoot me an email or a pm. I was specifically considering a call option on Apple (not that I actually have the money to invest in Apple. )

As to my question regarding how much you should have to invest; I realize that... but I also recognize that it costs money to make trades... It wouldn't make sense to invest 50 dollars if the fee is 10 dollars.

Thanks for the help! I think I may read a few books on the subject and start shifting 10% of my pay into the market.