The Buffett Floor

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	Tuesday September 6, 2011 Email Me | Visit our Blog | Subscribe | Unsubscribe Trouble Reading this Email? - Click Here The Buffett Floor The Dysfunction of Government Higher Dividend for Microsoft? Fellow Investor, Well, summer trading is now over. Labor Day is past (I hope you enjoyed the holiday) vacations are done, and we should be getting back to full participation in the stock market. August, especially, is usually a very light volume month. But the one that just ended was an exception, as the near default, and S&P downgrade were met with extreme volume, and point declines. So what do we have to look forward to, now that Fall trading is here? Good question, and not an easy one to answer. The usual suspects - U.S. banks and European debt - are still at the forefront. And the situation for U.S. banks is getting worse. I've been saying that Bank of America (NYSE:BAC) is broken for a little while. I was somewhat bullish on the bank, right up until proposed settlements for mortgage issues were rejected. That opens the door to higher liabilities for BofA. And really, we don't know how much higher the totals could be. One thing is clear: the stock has fallen below the Buffett Floor today. The Buffett Floor is $7.14, the price where Buffett can exercise his warrants for 700,000 shares of BofA. For the stock to fall below that level is an indication that sentiment toward the stock is very poor. The news last week that the Fed asked Bank of America for its contingency plan in the event that business conditions worsen is also not a good sign. There is speculation that BofA will have to either sell or spin-off Merrill Lynch. News that clarifies this possibility is your next catalyst for BofA stock. And clearly, it would be better for the stock if BofA can keep Merrill... [continue reading at WyattResearch.com]       Click to view the remainder of the article... Is America the next Greece? Top analyst warns: "The United States is now in WORSE shape than Greece, Ireland, Spain, Italy or Portugal!" Is he right? View his free video and judge for yourself. Warning: Content may be too disturbing for some viewers. Click here to watch the new uncensored video.   Market Snapshot US Markets - Sept 2 Close Dow Jones 11,240.26 -253 (-2.20%) S&P 500 1,173.97 -30.45 (-2.53%) Nasdaq 2,480.33 -65.71 (-2.58%) Currencies EUR/USD 1.39 -0.011 (-0.758%) USD/JPY 77.495 +0.55 (+0.715%) GBP/USD 1.594 -0.017 (-1.08%) Recent issues of Daily Profit Investors Enter September With High Hopes S&P, You've Got To Be Kidding What the Fed is Waiting For more» Valuable Investment Ideas From Wyatt Investment Research How to Appropriately Allocate Your Investments Wyatt Research Options Strategist Andrew Crowder answers the FAQ: How much of your net worth should you allocate to each investment class? more» What The European Debt Crisis Means for Gold The Euro is in big trouble, and so is every country in the Euro-zone and beyond that's tied to it. more» The Government Lies About Inflation We know the government lies to us about inflation. In fact, investors take this lie as just another cost of doing business as a willing participant in the world's greatest economy. more» Independent Investment Services Wyatt Investment Research provides investment research that is independent of the back door deals and machinations of Wall Street. more» Need to retrieve your password in order to view our articles? Click here. Disclaimer & Important Information Wyatt Investment Research and Daily Profit is owned and published by Business Financial Publishing, LLC of Washington D.C. Business Financial Publishing is neither a registered investment adviser nor a broker/dealer. Readers are advised that this electronic publication is issued solely for information purposes and should not to be construed as an offer to sell or the solicitation of an offer to buy any security. We encourage you to review our full Disclaimer and Disclosure policies. To view our Disclaimer Policy, please click here. To view our Disclosure Policy, please click here If you believe this communication to be a mistake or unsolicited, please e-mail abuse@bfpnewsletters.com with details regarding your situation, and we will be sure to promptly investigate your situation. Did a friend forward you this newsletter? Click here to sign up for Daily Profit today! You are subscribed with the following email address: ignoble.experiment@arconati.us To unsubscribe from this newsletter, please click here. Copyright (c) 2011 Business Financial Publishing, LLC. | Privacy Policy Wyatt Investment Research c/o Business Financial Publishing 65 Railroad Street Richmond, VT 05477 PO Box 790