XRTrader

News Impacting Bank of America

I think the article and comment above are off the mark. YES BAC has uncertainty, YES many directors will resign (most of the board will be replaced), YES credit loses will crimp earnings in the next 3-4 quarters. The Countrywide case AGAINST Mozilo will have only minimal impact on BAC.

The market price of BAC (between 9 and 12) already factors all this in....with a total market cap of approx 60 to 75 billion [heavily discounted when you consider their assets and earning potential]. Those of us who hold BAC are in for the long term....if the bank can survive (they will, with gov help already provided), and earnings return to 1.5-2 / share by 2011 (or 2.5 by 2012) [which is concievable], then this stock will be near 25-30. Thats a decent year-over-year gain.

Again, investors show that they are very short sited.