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A recent Bank of America (BAC) selloff offers an attractive entry point, says Barron's Andrew...

A recent Bank of America (BAC) selloff offers an attractive entry point, says Barron's Andrew Bary. With its dominant U.S. banking business and attractive brokerage operations, BofA should be able to earn good returns in a better economy, even as it shifts away from its reliance on consumer fees.
Comments (13)
  • nobby73
    , contributor
    Comments (1177) | Send Message
     
    I think I'll pass...
    1 Aug 2010, 05:20 PM Reply Like
  • Trader DMA
    , contributor
    Comments (77) | Send Message
     
    Hard for me to understand banks from a fundamental perspective.
    But charts doesn't look bullish at all.

     

    So I think for now I'll pass. too
    1 Aug 2010, 06:24 PM Reply Like
  • muoio
    , contributor
    Comments (2957) | Send Message
     
    BAC is bankrupt! No one has told em yet----don't be fooled BE careful and look closely at the bad debt they are writing off way TOO slowly!
    1 Aug 2010, 06:27 PM Reply Like
  • Cal Finance
    , contributor
    Comments (152) | Send Message
     
    Key words - "in a better economy." Enough said.
    1 Aug 2010, 06:41 PM Reply Like
  • EKL
    , contributor
    Comments (29) | Send Message
     
    Agree with all esp. the ML fiasco.
    1 Aug 2010, 06:47 PM Reply Like
  • Rickthegeek
    , contributor
    Comments (118) | Send Message
     
    no thanks. With the recent Citibank disclosures and Goldman Sachs fiasco, who can trust them. Not to mention the fact that nobody really knows what it in the 2000 plus manual for financial regulation and what the true future is going to hold for any bank. There is more to come.
    1 Aug 2010, 07:15 PM Reply Like
  • cincinnatijake
    , contributor
    Comments (146) | Send Message
     
    Isn't this the same company that inappropriately and consistently (2007-2009) shifted $10.6 billion assets off of the balance sheet in a Lehman Repo 105 sham repeat?

     

    I don't think I would feel too comfortable recommending the stock of a company that endorses fraudulent practices.

     

    www.jrdeputyaccountant...
    1 Aug 2010, 08:12 PM Reply Like
  • Ohrama
    , contributor
    Comments (512) | Send Message
     
    I went back and looked at the charts. It hit a low of $3.00 in March 2009. Did not recover even to the (low) level of Oct. 2008. So, all the pumping and the trillions of dollars wasted seem to have done nothing much and postponed the inevitable for a couple of years (and I guess that 'couple of years' is almost gone). Yes, I put only part of my free cash at the March 2008 bottom, but at this late stage of the game (housing still in dumps, no improvement in employment, the economy slowing down etc.), I would rather wait some more and see if things unfold (another low overtaking March 2008?) and become uncontrollable.
    1 Aug 2010, 09:53 PM Reply Like
  • jstratt
    , contributor
    Comments (2317) | Send Message
     
    I have BAC and am considering selling. I think it will do well longer term and it is down 30% from its high.

     

    Generally sell all my financial stocks if I think we are entering a downturn. I bought some of my BAC at $3.83 on Mar 9, 2009. Part of me looks out 5 yrs and sees excellent returns. The rest of me sees single digit potential in the next 9 weeks.
    1 Aug 2010, 10:34 PM Reply Like
  • a fat panda
    , contributor
    Comments (806) | Send Message
     
    I am not sure that I understand all of the hate here. BOA is part of the best franchise in the world, the Federal Reserve Bank. It is difficult to lose money when the FRB lends money to BOA at less than 1%. The charts may say sell, but it is extremely difficult to argue with the business model.
    1 Aug 2010, 10:35 PM Reply Like
  • Chinese Food Critic
    , contributor
    Comments (12) | Send Message
     
    A lot of hate here. Emotions are running high. Reality is that all the banks being taken over by the FDIC are tiny banks. Banking is a big business and requires a lot of capital. Banks with economy of scale will suceed and excel. BAC will be a huge beneficiary when the economy recovers....however that may be years away.
    1 Aug 2010, 11:15 PM Reply Like
  • MarketGuy
    , contributor
    Comments (3983) | Send Message
     
    Just another example of a "bought and paid for" media rag pumping its venom to the lemming masses.

     

    BAC?...Barron's...lol.
    1 Aug 2010, 10:43 PM Reply Like
  • nightfly
    , contributor
    Comments (1017) | Send Message
     
    Zombie bank, and not the only one by far; nuf said.

     

    And anyone who thinks this will all be "over" in 5 years? You need to read up on one simple ratio: mortgage debt to real-estate value; one has only dropped 2%, the other over 15%.
    1 Aug 2010, 11:29 PM Reply Like
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