Bank Of America's Top Sells: 3 Potential Shorts, 2 Neutral

 |  Includes: AAPL, BMY, BSX, CMCSA, T
by: Rash Menaria

Bank of America Corporation Corp. (NYSE:BAC) is an American multinational bank and financial holding company. Its Global Wealth and Investment Management division is one of the top ten largest U.S. wealth managers, with over $500 billion in assets.

I discussed Bank of America's Top Buys in a previous article. In addition, it is interesting to look at top stocks in which Bank of America is selling its holdings and booking profits. The following is a list of some of its top sells from the last quarter, according to its latest 13Ffiling.

Company Name


Shares Sold Last Quarter

AT&T Inc.



Boston Scientific Corporation



Comcast Corporation



Bristol Myers Squibb Co.



Apple Inc.



Click to enlarge

I am bearish on AT&T, Boston Scientific and Comcast Corporation among above stocks while I have a neutral rating on Apple and Bristol Myers Squibb.

Boston Scientific is a manufacturer and developer of medical appliances and equipment. Last quarter, Boston Scientific reported poor sales performance primarily due to disappointing CRM and DES sales in all regions. The company is seeing pricing pressure and also losing market in the ICD (Implantable Cardioverter-Defribillators) market in the U.S. Going forward, I expect further CRM market contraction and pricing headwinds particularly in ICD and DES markets. Although the company is taking some good steps in terms of cost cutting, poor topline growth prospects makes me negative on the stock.

Comcast Corporation is a provider of entertainment, information and communications products and services. The company operates in five segments: Cable Communications; Cable Networks; Broadcast Television; Filmed Entertainment and Theme Parks. Comcast appears to be a good sell given its continued investment spending in NCBU. Although its cable business reported strong last quarter results, it is expected to slow in 2012 due to product maturation and intense competition.

AT&T Inc. is a provider of telecommunications services in the United States and worldwide. I am not too positive on AT&T. Although its break-up with T-Mobile came somewhat along expected lines, the failure of this deal is a net negative for AT&T as it will now have to look elsewhere for the spectrum. Further, fall off of this deal is not good from a competitive point of view for AT&T. AT&T would have been a more powerful competitor with the merger. Without the deal, both Verizon (NYSE:VZ) and Sprint (NYSE:S) should be better able to compete.

Apple Inc. is a good company and its business fundamentals are going in the right direction as it continues to gain market-share in the fast growing smartphone and tablet space. However, I am a bit skeptical on the stock after its recent run up. I have outlined my major concerns with Apple's stock in a previous article. My key concern with the stock is declining iPhone sales in the coming quarters and too many expectations on the dividend front. I have a neutral rating on the stock.

Bristol-Meyers Squibb is another good company and I believe the stock can deliver upside if its pipeline continues to deliver. However, given its high valuations (~17x Forward PE) I would prefer to be on the sidelines and have a neutral rating on the stock.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.