Bank of America Set to Rebound (NYSE: BAC)

NEW YORK - Bank of America's stock looks to rebound as it has been badly bruised over the last week since it was reported that they will not be a dividend raiser. Major banks who are raising dividends also sold off, later in the week as investors applied the new adage of sell the rumor sell the news. Banks stocks have stagnated over the last several months as investors continue to fear them despite recent relief from the Fed over the ability to raise dividends and buy-back stock.

Theoretically a dividend increase should not play into the value of the stock but investors of BAC are wondering why their company never receives any good news.

To read the premium BAC report click here.

Bank of America Rises (NYSE: BAC)

NEW YORK - Bank of America Corp., the biggest U.S. bank by assets resolved disputed and agreed to pay 2.6 billion dollars to Freddie Mac and Fannie Mae.

BAC stock is up now over 5% in early morning trade on the news and puts the stock up 14% since it released its quarterly three earnings and 4% up since news of the foreclosure scandal.

Bank of America faced $12.9 billion in unresolved putback demands on soured mortgages before today. A putback is a word used on Wall Street for a sour loan a bank may have to buy back.

Allan Edwards CEO of The Markets Are Open commented "this is positive news, but I never considered it when I was purchasing BAC all through the last month... Many people were making to big of a deal of the "putback" scandal considering Bank of America's capital position."

To see the full BAC reportclick here.

Captain Bank of America, BAC, JPM, WFC, USB, PNC

Bank of America (NYSE: BAC) leads the financial sector higher after lagging for almost 8 months. The banking sector has taken hit after hot and entered oversold territory long ago. All of the negative news surrounding housing, credit cards, wiki leaks and more has finally come to a stand still as investors pour their money back into America's top banks with highest earnings potential in the new year. Bank of America led the pack rising 2.54%, JP Morgan (NYSE: JPM) followed suit, up 2.44%, Wells Fargo (NYSE: WFC) was up 1.17%, US Bancorp rose 1.24%, and PNC Financial jumped 0.78%.


To read the full report click here.

Bank of America (NYSE: BAC) Poised to Pop?

The entire banking sector has endured the wrath of short sellers since April. Bank of America (NYSE: BAC), the worst performer among the major banks hit a low of $11.03 at the end of October. The stock is down substantially from it's 52-week high reached in April of $19.86. Is it time for BAC to make a come back?

With recent changes in Washington, rumors have been floating that banks could begin to raise their dividends once again. Bank of America currently pays a 1 cent dividend - the company used to boast a 64 cent payout. It may take time for the payout to reach that amount again, however the US banks are well capitalized and are earning profits. Bank of America could easily up its dividend exponentially. A 10 billion dollar goodwill write down scared investors into thinking that the bank reported a major loss. However the bank would have reported a large $3 billion profit if it weren't for the one time loss. Each quarter Bank of America gets financially stronger, yet the stock price continues to fall. The question is, when will investors notice?

Banks In America Rally (NYSE: BAC)

NEW YORK - The U.S. Banks rallied sharply on Thursday but remain at historically low levels. Bank of America the nations largest lender rallied over 5 percent as investors soothed worries over how much money the bank will have to pay due to the foreclosure scandal. The foreclosure scandal which has rocked the nation over the last month involves banking employees foreclosing on homes without properly reviewing the necessary documents. Goldman Sachs estimates that the top six banks in the U.S. may face $26 billion in potential losses.

Not only is this amount tiny for the institutions in question which wrote down billions during the recession but its likely they already have the necessary reserves. Bank of America has $35 billion of non performing loans but it has $43 billion of reserves. It is also true that that its not a straight subtraction since the loans that are non performing can be sold meaning BAC has plenty of reserves for any future losses. These banks will likely earn over $60 billion in the next year meaning any potential losses are covered two times over.

This number by Goldman is also a guess guess and is essentially drawn from thin air. Goldman argues the banks will face losses by buying back their loans. But this is unlikely since they sold the loans at a certain price, so they would only face losses if they bought the loans back at a premium price which would not make sense. If the bank is forced to buy back these loans, they also have the ability to make money if these loans go up in value.

U.S. Banks remain extremely cheap. Bank of America is valued only four times as much as ICICI bank of India, despite having supreme credit quality and being over twenty times the size. Investors are going under the philosophy ignorance is bliss as they buy risky assets in foreign countries that they don't understand.

Bank of America could see a large increase in price over the next week as investors who fled the companies shares roll back in.

Investors favor Indian over U.S. Banks(NYSE: BAC) (NYSE: IBN) (NYSE: PNC)

NEW YORK - Indian Bank stocks are being valued at a premium compared to American Banks of greater size. Yesterday, we pointed out that PNC Financial has a market capitalization of $4 billion less than ICICI Bank despite having double the amount of assets, and earnings power.

How can Indian Banks be valued so high? The Future I guess... But the Indian economy is 1/14 the size of the American and in twenty years at the current growth rate of each country it will be 1/4 the size. If the Indian Banks are to grow with the economy at a linear rate it would mean by 2030 their largest banks will be 1/3 the size of Bank of America by assets at the present date. Despite these facts, ICICI bank currently has 1/4 the valuation of BAC. But we tend to think it has to do with Bank of America being at a ridiculous price.

Furthermore, Indian banks have inherit risk due to their large contingent liabilities on their balance sheet. They have hedges that are sometimes 400% the size of their balance sheet. U.S. Banks such as PNC Financial have showed better growth than ICICI and are currently double the size but have a lower valuation. The Indian economy and its banks have a bright future but their banking stocks valuation seem a little stretched. Ignorance is bliss for investors.

To read our report on BAC click here and PNC click here.

Bank of America, Or American Banks (NYSE: WFC) (NYSE: JPM) (NYSE: BAC)

NEW YORK - The major United States bank have remained mostly flat since they reported their earnings. J.P Morgan is down 6.9% or $12 billion of market capitalization since it reported, despite reporting a profit of $4.4 billion. Investors worried about the foreclosure scandal that had just began to unfold. But despite recent clarification the stock has remained lower.

Bank of America has lost 7.3% since or approximately $10 billion of market capitalization since it reported just over a week ago. The bank reported $3.1 billion of adjusted profit but lost $7.3 billion with the goodwill charge. To read our BAC report click here.

Wells Fargo has been the best performing bank since it reported, the stock is up 6.5% or about $8 billion of market capitalization. The bank reported record profits of $3.34 billion. To see the full Wells Fargo report click here.

Citigroup is up 5% or about 6 billion of market capitalization since it reported $2.1 billion of profit. Surprisingly the bank is valued higher than Bank of America despite lower profits the stock has vaulted higher then its peer.

PNC Financial the 6th largest bank in the U.S., surprisingly is only 2.1% higher despite near record results when it reported just over a week ago. The bank announced $1.1 billion of profits. To see the full PNC report click here.

Bank Of America is (NYSE: BAC) Frustrating Investors

New York- BAC investors have been frustrated by their stock's poor performance over the last year. The stock is down from May 2009 and BAC's stock decreased in the previous month, while the Dow Jones rallied to its best September since 1939.

Jedd Arricale of T. Row Price Group said that BAC needs to provide more information on margins and returns that it expects its business to return in the future. Many investors are afraid of the revenue BAC will lose due to financial reform. Andyraw Kibbens CEO of The Markets Are Open said "while BAC did not tell investors how much revenue they will lose... I am willing to take the risk that they will remain profitable." Kibbens was pointing to the fact that the stock trades just above tangible book value and that this is usually the quintessential bare minimum price a stock can trade at. Investors are putting pressure on BAC to provide more disclosure in Q3 and answer these questions.

To see his full report on BAC Click Here

Bank Of America Corp(NYSE: BAC) Is For Closers Only

Bank of America closed in the green for the day. The bank stock struggled throughout the day and finally received its footing in midday. Despite the Dow having the strongest September since 1939, the banking stocks closed the month with only modest gains. Banking stocks have continually been under pressure from investors. BAC and the other banking stocks appeared to be still valued for the worst. BAC finished the day up over 1% as the overall banking index rallied. The top performers where Citigroup, JP Morgan and PNC Financial.

To see the BAC report Click Here

Bank of America Corp (NYSE: BAC) Lags The KBW Banking Index

New York- Currently the KBW Bank index which is a measure of the largest banks in the U.S. is soaring over 1.2 % while Bank of America is currently only up 0.52% in early trade. The stocks bears appears to be continually winning the fight, on pushing the stock price lower, despite improving fundamentals.

Bank of America Corporation is a bank holding company, and a financial holding company. The Company is a financial institution, serving individual consumers, small and middle market businesses, large corporations and governments with a range of banking, investing, asset management and other financial and risk management products and services. Through its banking subsidiaries (the Banks) and various nonbanking subsidiaries throughout the United States and in selected international markets, it provides a range of banking and nonbanking financial services and products through six business segments: Deposits, Global Card Services, Home Loans & Insurance, Global Commercial Banking, Global Banking & Markets, Global Wealth & Investment Management, with the remaining operations recorded in All Other.

Is This The Stock of Opportunity

New York- Bank of America Corporation stock trended lower today dropping 16 cents or 1.21 % and finishing at 13.11. Allan Edwards CEO of The Markets Are Open noted that the stock is currently having trouble breaking its range outside of $13. " He said that "Bank of America has done an excellent job building up provisions and should recognize gains in future quarters."

Edwards added that these gains are important for banks. He also noted that the banking sector appears to be priced in for the worst, despite improving fundamentals. Most of the banks, trade near their equity despite having impressive capital ratios, and improving profits.

Edwards noted that BAC will have a one time loss in Q3 due to a write off of goodwill, but that the stock is still very attractive.

To see his full report Click Here

Bank of America Corporation is a bank holding company, and a financial holding company. The Company is a financial institution, serving individual consumers, small and middle market businesses, large corporations and governments with a range of banking, investing, asset management and other financial and risk management products and services. Through its banking subsidiaries (the Banks) and various nonbanking subsidiaries throughout the United States and in selected international markets, it provides a range of banking and nonbanking financial services and products through six business segments: Deposits, Global Card Services, Home Loans & Insurance, Global Commercial Banking, Global Banking & Markets, Global Wealth & Investment Management, with the remaining operations recorded in All Other.

Bac to $12?

New York - Bank of America the largest U.S. bank, fell 1.15% to $12.87 in Friday trading on Wall Street. "It is like we are in a time warp." Remarked Andy “Raw” Kibbens star analyst and co-CEO of The Markets Are Open. He continued, "I have not seen BAC at such low prices since 2009, it is if we are in 2009 today." All of this has happened despite Fitch, one of the three major rating agencies on Wall Street, raising BAC preferred stock credit rating a step above junk status. Kibbens commentated, "this is great news, the better credit rating, the more secure an investment is, the higher the stock will usually go."

Raw continued to look for support in BAC's stock price "well I thought there was solid support at $13 it had looked like we had formed a base, but now we are under $13 what do I do now? Will it go back to $13 can it drop to $12; it is really in no mans territory." This stock drop has persisted after BAC reported Q1 numbers that disappointed as most of the profit could be attributed to one time gains.

Is it time to Bac up the Truck?

EDINBURGH, UK - Bank of America hit a brand new 52-week low today as investors dump there shares on banking, economic, and even environmental fears. The low unemployment rate is keeping the economy in a slump as people are defaulting on their mortgage and credit payments. “Obama needs to create jobs.” Andy “Raw” Kibbens, co-CEO of The Markets Are Open repeated at a public speech at the start of a concert in Edinburgh earlier today. “We must work together!” he shouted to the thousands of fans. Bank of America is hitting resistance and is coming to a technical buying point which could mark the beginning of a new long term bullish trend. The stock hit $13.06 today as the market turmoil was too much for investors.

Down Jones Industrial Average

At early morning most stocks are declining on the Dow Jones. Bank of America is down over 6%. BAC reported a profit of nearly 3 billion and stated that non performing loans declined as charge-offs of loans gone sour fell. Traders sent BAC lower on skepticism of their ability to execute in the future. General Electric reported a profit of over 3 billion. GE's top line growth fell from the previous year which is in focus today by the markets. The markets have sent GE shares spinning 3%. Alcoa is down another 1.3% today in trading news. There is a quiet whisper on Wall Street that Alcoa will be replaced in the Dow Jones. Pfizer is currently level on the day with a quiet whisper on their ability to develop new drugs. This has sent Merck tumbling .36% as a new push by Pfizer means declining sales for Merck.