Now that he and the rest of his team have resigned, he may start his own firm—and the money may want to follow
After shunning large lending companies, billionaire value investor Michael Price bought shares of Bank of America (BAC) in its $19.3 billion equity sale on Dec. 3, and says he plans to buy more. The company, whose stock fell 66% in 2008, plans to repay $45 billion in Troubled Asset Relief Program (TARP) funds.
Price says Charlotte (N.C.)-based BofA is the only large U.S. bank that he owns. Its price could rise above $20 if profit reaches $2 a share, he says. The average per-share profit estimate of analysts surveyed by Bloomberg is 96 cents for 2010 and $2.10 for 2011. BofA's stock is up about 10% this year.