Trainwreck BofA Offering

From Bloomberg:

Bank of America Corp. will cut its dividend by 50 percent and plans to sell $10 billion in common shares after third-quarter profit fell 68 percent. The stock fell in late trading. Bank of America profit dropped to $1.18 billion, or 15 cents a share, in the quarter ended Sept. 30, from $3.7 billion, or 82 cents, in the same period last year, the Charlotte, North Carolina-based company said in a statement.
``These are the most difficult times for financial institutions that I have experienced in my 39 years in banking,'' Chief Executive Officer Kenneth Lewis said in the statement. ``It is prudent to raise capital to very substantial levels in this uncertain environment.'' Bank of America dropped 7.2 percent to $29.91 as of 4:27 p.m. in extended trading. During the regular session, the bank dropped 6.6 percent. Lewis said "recessionary conditions'' and the outlook for an even weaker economy will drive up credit losses and depress earnings.


My comment: Way to attract investors: cut dividends AND dilute stocks! Is it a surprise to anyone that Bank of America Offering is a Calamity ?