As you may have heard, today at 1PM Bank of America take part in a conference call held by Fairholme Capital manager Bruce Berkowitz to talk business. Most people who comment on such things have reminded us of the last bank executive (first name Erin, last name Callan) to hold a conference call while business is being called into question and where she is today. And while the people who follow such things are interested in the call, you couldn't exactly say they care in an "I'm emotionally invested in this whole thing and I am freaking the fuck out" sort of way. Then you have Dick Bové. The Rochdale analyst is straight up losing her mind that Brian Moynihan would even entertain the thought of getting on the phone with Berkowitz and has spent the last 24 hours pleading with him to reconsider. This is what she had to say last night on Fox Business:
Mr. Moynihan’s credibility has fallen dramatically because the company made certain statements concerning what their losses would be in the mortgage sector and what the earnings might be going forward, and all of those promises have not been kept. It is very difficult for Mr. Moynihan to convince investors what he says is correct. Having an hour presentation is a terrible mistake; if I tell you as a CEO I don’t need equity, I don’t need shareholders. He should not do this meeting tomorrow. There is very little he can say other than ‘I will increase the dividend, that will get the stock to move higher.’
Now, if this were any other analyst, we'd tell Bri-Moy to ignore it and do what you gotta do. Knowing Bové, however, we urge you to get out of this call immediately. Think she sounds angry now? If you go through with this meeting you will find out that hell hath no fury like a chafed Dick. Don't believe us? Allow us to refresh your memory as to how she reacted the last time a bank got cozy with someone while she sat home alone.
This is Bové, in a note to clients, after Citigroup held a private little get together with Mike Mayo in June 2008.
The fashion by which the company made this information available is questionable and unacceptable to this analyst. The company did put out a press release indicating that the call would be held but not to all investors. The call was handled so only one analyst and the clients of his firm could ask questions. Material information was made available but it is open to question if it was made available in a fair and honest fashion to all investors. Perhaps SEC FD is dead. Shame on Citigroup.
Her hormones in full swing, she went on to say that "Despite the upset today, I am maintaining the Buy recommendation on the stock" but the damage had been done. The trust was lost and the crazy unleashed. Brian, we say this as friends- pull out of this immediately. Fuck the short notice and what it will look like. If you go through with this call, you will have only yourself to blame for the late night drive bys, the slashed tires, the harassing messages sent to Bruce about keeping his hands "off my man," the "pig!!!" keyed to your car. And that's if she doesn't get really upset. What does really upset look like? Picture taking away your buy call and upgrading every one of your competitors while you just sit with there with a sell rating. Picture her telling all her analyst friends to freeze you out. Picture her writing in her next note to clients that your balance sheet is "nothing to write home about" and that she's "fallen asleep" while reading it on several occasions.
Picture all that.
Brian- there's still time.