BAC Buyback Keeps the Party Rocking

Bank of America's (BAC - commentary - Cramer's Take) just blowing me away at this point. Maintains dividend, announces buyback. Amazing.

Each day, when the financials look like they are going to roll over, we get news like this that stops you right in your tracks. A buyback? That's incredible.

It makes you ask yourself, "What the heck happened here? Did BAC really put the problems in the past? Did we just find out that housing has already bottomed?"

I have to tell you that when I read the statements of BAC, I have to believe that housing has to be bottoming within the next six to nine months. It is inconceivable that anything else can be true; there is no other explanation for this level of bullishness from this bank ... unless they have lost their minds!

When Bank of America said things were OK a couple of days ago, we then got hit with the embarrassment that was American Express' (AXP - commentary - Cramer's Take) horrid earnings. Lots of people thought the rally had to be over.

Nope.

Then when Wachovia (WB - commentary - Cramer's Take) reported that horrible quarter and the stock traded down to $11, I heard the rally was over.

Nope.

Then when Washington Mutual (WM - commentary - Cramer's Take) gave its forecast, people said the rally was over.

Nope.

Now we get the BAC news at the same time that oil remains in free fall.

It's not over.

Most of the people who run long-short money wish it were over. Why? So they can buy the financials, that's why. They want to join the party.

And they can't get in.

Random musings: I still think Sirius (SIRI - commentary - Cramer's Take) is a good spec, but remember that the dilution here -- they have to issue more equity at some point, even if it is convertible equity -- could be massive. ... I just bought 100 shares of Devon (DVN - commentary - Cramer's Take). I guess I am taking my life in my hands, but the ratios here are weird. Last time XTO (XTO - commentary - Cramer's Take) was at this price, nat gas was at $7 and change, not $9 and change. I think if you have a six- to 12-month time horizon, you will wish you had bought the XTO in the secondary after the close. I am surprised they haven't pulled it!

At the time of publication, Cramer was long Devon.

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