Late on Monday we issued an alert to buy calls on Bank of America (NYSE: BAC). It looked perfect to make a great return. Then after the market closed North Korea launched a missile flying it over Japan. Futures tanked and the next morning we were stopped out of BAC. Then late in the day Tuesday (after being stopped out) if is announced that Billionaire investor Warren Buffett, who came to the aid of a struggling Bank of America back in 2011 with a $5 billion investment, has turned that into a paper profit of more than $11 billion after exercising his right to buy 700 million shares of the bank's common stock at a bargain-basement price.
After Tuesday's market close, Bank of America confirmed in a press release that Buffett's Berkshire Hathaway had exercised its warrants to buy 700 million of the bank's common stock at $7.14 per share, a steep discount to the bank's Tuesday's closing price of $23.58. This news is boosting the stock and in less then 48 hours our alert went from very good - to stopped out - to excellent.
Timing is everything, had the North Korea news not have happened we would be looking great - maybe a 50%+ gain.