Bank of America is Still a Buy

Despite being on the losing end of the trade since my bullish call on Bank of America (BAC) last week, I am sticking with it. In fact, I bought more earlier this week and I believe its a stronger buy here. The dividend seems very secure and this carnage will end soon.

Full Disclosure: I own BAC but my position can change anytime without notice.

Comments

[Mosh]

Good Luck Sir and God Speed!
Going long once in this sector is crazy. Keep adding to a losing position is sheer stupidity. Losing everything in 3 months...priceless!
You’re trying to call a bottom (or even a short term one) on a bank that is a big player in the bursting of the biggest bubble in American history. The bigger the bubble, the lower the stocks will go to and it will always be lower than people think. Much lower!
It’s an historical fact and the bursting of this bubble will not be any different.
True, Bank of America can bounce here, but it can also go to $35 even $30 who knows?
And to say that “the carnage ends here” is absolutely irresponsible! Based on what exactly? Banks have been discovering new billions of dollars loses on a daily basis recently, it’s not going to end so easy. If 2008 will be a recession year as most of American believes, we might see a big bank or two vanishes very quickly. Who knows?
The carnage will end when it wants to end – No one can call a bottom here. Period!

[Mosh]

How's the long going Mr. Laljee?
Don't forget, BAC sank 2 billion in CFC which might see bankrupcy in 2008. The stock is at 2 years low. I say $35 is the next level.

[rcleary29]

Sub $20. Truly amazing.

[FaisalLaljee]

Yes I was very wrong as was anyone who bought any of the financials.