VOLUME SURGE: Killing Financials Selling Stock

Posted in General 
October 8th, 2008

This morning we are seeing two key financiall stocks getting hacked despite the global rate cuts.

Bank of America (BAC) is getting hit hard after pricing 455 million shares at $22.00.  That was alreadu a sharp discount and after a massive market tank.

MetLife (MET) is also getting hacked this morning after it pre-announced lower than expected earnings.  It is also selling 75 million shares to boost liquidity and shore up assets.

Financial firms need to start considering more than just dilution in their capital raising decisions.  They need to consider that it wrecks their shareholders even further, and shareholders can’t take much more of it.

At 9:29 B of A is down 14% at $20.36 and MetLife stock is down 21% at $29.00.

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