Seeking Alpha

BAC
Bank of America Corporation - NYSE

4/16/2014, 12:42 PM ET
Quote & Analysis Breaking News StockTalk
bac chart
Today 5d 1m 3m 1y 5y 10y
52wk high:  
52wk low:  
EPS:  
PE (ttm):  
Div Rate:  
Yield:  
Market Cap:  
Volume:  
FOCUS  |  RELATED  |  TRANSCRIPTS  |  OTHER NEWS & PR
  • Getting Past The Financial Crisis: Bank Of America Earnings
    Robert Cowell Today, 5:05 AM 4 Comments

    Summary

    • Bank of America recently settled major housing and credit card related investigations.
    • Revenue is in decline. The consensus estimate is for $22.3 billion for the quarter, compared to $23.5 billion a year ago.
    • There have been some job cuts in the Global Trading and Investment Banking Division. Cost cutting is necessary to maintain earnings in a declining revenue environment.
    • Consensus is for 27 cents a share in earnings, compared with 20 cents a share a year ago.
    • CEO Brian Moynihan has showed crisis management skills and brought back a dividend. Can he transition into profit making?
  • Bank Of America: Don't Be Fooled By Dead Cat Bounce
    David Alton Clark Mon, Apr. 14 44 Comments

    Summary

    • Bank of America popped nearly two percent Monday on no news.
    • I posit the rally is unjustified and will prove to be a dead cat bounce.
    • This risk/reward equation to buy prior to earnings is now unfavorable.
  • Earnings Preview - Bank Of America Q1 2014
    Selerity Research Mon, Apr. 14 9 Comments

    Summary

    • Bank of America is scheduled to report 1Q 2014 earnings before the opening bell on Wednesday, April 16th.
    • Earnings Per Share (EPS): The current Street estimate is $0.05 (range $0.02 to $0.11).
    • Revenues: Analysts expect a decline of 5.0% y/y to $22.33 bln (range $21.45 bln to $24.89 bln).
  • Bank Of America: On The Road To Doubling Returns On Shareholder Capital
    Josh Arnold Mon, Apr. 14 10 Comments

    Summary

    • Bank of America's ROATCE was unsustainable during the pre-crisis years.
    • BAC has been de-leveraging its balance sheet, which has depressed ROATCE in the short term but has put the bank in a much better position going forward.
    • My medium term ROATCE target is 15%, just over double the current level.
  • Bank Of America: Intrinsic Value Approximately $26 Per Share, Upside Potential 63%
    Achilles Research Sun, Apr. 13 11 Comments

    Summary

    • Bank of America has an intrinsic value of $26 per share (if not more).
    • Settlement risk has been substantially reduced which clears the way for growth and capital deployment.
    • Market and share pullbacks make investment opportunity even more attractive.
  • Buy Bank Of America: A Safe Turnaround Story
    Shiv Kapoor Sun, Apr. 13 23 Comments

    Summary

    • Bank of America was severely wounded by the financial crisis and its acquisition of Merrill Lynch and Countrywide. Their turnaround has progressed nicely.
    • Much of the repair to the balance sheet is done: now it’s a matter of realizing their true earnings potential. Perhaps achievable in the coming five years.
    • Over the coming ten years I expect Bank of America, together with its crisis acquisitions to emerge far more powerful than ever before.
    • The stock is attractively priced - it trades at a 24% discount to book value and a 15% premium to tangible book value.
  • Bank Of America: Catching A Falling Knife Can Be Painful
    David Alton Clark Sat, Apr. 12 27 Comments

    Summary

    • The stock has fallen straight down 13% in short order with no sign of stopping.
    • The drop is mainly related to the wholesale sell off of the financial sector.
    • This has produced a major buying opportunity in the stock.
    • Fundamentals and valuation are solid.
  • Bank Of America: Go Home Mr. Market, You're Drunk
    Josh Arnold Fri, Apr. 11 32 Comments

    Summary

    • Bank of America's recent sell-off is unwarranted and has been on no relevant news.
    • Earnings and tangible book value multiples suggest BAC will hit $20 per share over the next year.
    • The sell-off yesterday was due to a smaller jobless claims number, which is an outright positive for bank stocks.
  • Bank Of America, JPMorgan Kick Off Upcoming Mega Bank Results
    Don Dion Thu, Apr. 10 21 Comments

    Summary

    • The first quarter of 2014 was disappointing for BAC and JPM in several regards, notably an outpouring of bad publicity, surrounding civil and criminal investigations, as well as certain aspects.
    • JPM kicks off Q1 earnings for several megabanks on April 11, 2014.
    • BAC and JPM shareholders should consider poor results as times to take some profits in either or both of these mega institutions.
  • Bank Of America: Should You Double Down At $16-17 Per Share?
    Achilles Research Thu, Apr. 10 31 Comments

    Summary

    • Consolidation offers a very attractive entry point for long-term shareholders.
    • Bank of America faces very favorable cyclical tailwinds which should boost the bank's bottom line.
    • Bank of America still trades at a 20% discount to book value providing investors with a sizable margin of safety.
  • Bank Of America Earnings Preview
    Josh Arnold Thu, Apr. 10 13 Comments

    Summary

    • BAC is expected to post declines in revenue and EPS.
    • A revenue beat should send the stock higher as investors are worried about top line growth.
    • Additional clarity regarding litigation liabilities is a net positive for shares moving forward.
  • Is This The Right Time To Buy Bank Of America?
    IAEResearch Wed, Apr. 9 14 Comments

    Summary

    • The economic recovery has been strong and the continued growth in the global economy will positively impact the banking sector.
    • The growth in the fundamentals of the business has been strong.
    • The bank is slowly getting rid of litigation issues as this remains the only major threat for Bank of America.
  • Bank Of America: The Past And The Future
    Balanced Investing Wed, Apr. 9 11 Comments

    Summary

    • Last year's annual results were greatly helped by higher yields, lower interest paid on deposits, and fewer provisions, that gave a 260% boost to diluted EPS.
    • Project New BAC is going strong. Analysis suggests that the bank is on target to achieve its desired bottom line savings.
    • Fed's tapering of the stimulative quantitative easing policy will result in interest rates becoming favorable, eventually benefiting BAC's interest margin.
    • Investments from Russia are more likely to flow to the U.S., and this will help the bank to acquire a greater amount of business and grow its GWIM business further.
  • Bank Of America Still Does Not Cut The Mustard
    Regarded Solutions Tue, Apr. 8 65 Comments

    Summary

    • The bank was approved to increase its dividend but it is still a puny amount.
    • Interest rates are not skyrocketing as predicted as the Fed began tapering QE.
    • Mortgage applications have dropped and so has lending, the life blood of bank revenues and earnings.
  • Bank Of America: The Sell-Off Is Unwarranted
    David Alton Clark Tue, Apr. 8 11 Comments

    Summary

    • A major stock market correction provides buying opportunities in solid stocks like Bank of America.
    • Bank of America has much more room to run based on future catalysts for growth.
    • Bank of America's fundamentals and valuation are improving compared to peers and industry averages.
  • Bank Of America On The Front Of This Adoption Curve
    Quoth the Raven Mon, Apr. 7 10 Comments

    Summary

    • BAC stock has been lucrative for the last 12 months.
    • The addition of a dividend should secure investors in their positions with BAC.
    • Most importantly, BAC is on the front of the adoption curve in banking innovation.
  • Bank Of America: Rising Rates A Net Positive?
    Josh Arnold Mon, Apr. 7 5 Comments

    Summary

    • History suggests Bank of America's lending margins will expand in a rising rate environment.
    • Enhanced margins mean billions in additional profits on BAC's existing asset base.
    • The opportunity is for 100+ basis points in margin expansion as rates rise.
  • Modeling Share Prices: Bank Of America To Hold
    Ivan Kitov Mon, Apr. 7 6 Comments

    Summary

    • We have developed a statistically reliable share price model for Bank of America based on the consumer price index of food at home and the index of rent of shelter.
    • The model does foresee significant price changes in April 2014.
    • The model standard error is $2.86 since July 2003, that corresponds to the level of intermonth price fluctuations.
  • For Bank Of America, Here Comes Housing Help!
    Markos Kaminis Fri, Apr. 4 15 Comments

    Summary

    • BAC shares fell 2.5% Friday on macro factors that sank the S&P 500 as well.
    • The stock has also been hampered by recent settlements and rumors of settlements.
    • But Bank of America has already been discounted for the alpha issue, and has rising rates and a glimmer of hope in housing going for it moving forward.
BAC vs. ETF Alternatives
Company Description

Bank of America Corporation is a bank holding and a financial holding company, which through its subsidiaries, provides banking and nonbanking financial services and products throughout the United States and in selected international markets.