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NYSE:BAC

Bank of America (BAC)

56.25
+0.05 (0.09%)
as of Jun 18, 2026, 10:42:05 pm Market Open.
492 watching
0
HOLD
The good news is that they are too big to fail. The stock has been hit so hard that if you own it, you're better off to continue to hold.
COMMENT
Too big to fail however, the difficulty is if you are a minority shareholder your holdings could be diluted because of government funding. Prefers Canadian banks. Of the US banks, this is one that he likes.
SELL
Have gone back to the government for more money because there acquisition of Merrill Lynch has caused them financial duress. 12.5% yield raises red flags.
BUY
Well-capitalized balance sheet. Trades cheap to its BV. As long as you don't mind them buying Countrywide they will survive. The Fed is making it where the curve is very steep on their net interest margin spread. Probably not going anywhere for the next 6 to 9 months but expect there will be some visibility by September.
DON'T BUY
We'll have to spend a fair amount of time working off the bad debts instead of focusing on the growth part of the business.
BUY
Thinks the US financials have had everything wrung out of them. It's only going to get better from here.
DON'T BUY
The model price is $13.77, a -2.5% differential.
DON'T BUY
Preferreds: Yielding 12% because of the weakness in the balance sheet. Have made acquisitions but still have to do funding to move forward. Very speculative.
TOP PICK
Buy a Leap (long term option) and go as far as 2010/2011. Look for a Leap that is around 75 or 80 deltas. (Greek Variable?) Gives % change how much your option price will change with a corresponding movement in the stock price. (You would be buying Calls because you want to be Long.)
TOP PICK
Yield of about 8%. Trading below book. Some of their acquisitions may not look good now but longer term they will be good. Own 10% of all the deposits in the US, which is a big advantage. One of the big issues they may have to face is that they are a big credit card company.
COMMENT
Doesn't think they yield is realistic and expects it will fall. Thinks the current price will hold. Dealing with internal organization issues.
BUY
Increasing their stake in the Chinese Construction Bank, the 3rd largest bank in China, was a bit of a surprise. Hasn't seen anything to suggest that the government is upset about this. Acquisition of Merrill Lynch will hopefully provide them with counter cyclical strength as well as some good opportunities. Next 3 months you might be able to get it cheaper but this is a good opportunity.
DON'T BUY
(Market Called Minute.) Getting down to a level where you would think it was pretty good. Balance sheets of US banks still give him the heebie-jeebies. There is a possibility of a dividend cut.
TOP PICK
Trading below book. 5% yield. Purchase of Countrywide will work out and was a good acquisition. Acquisition of Merrill Lynch gives them universal banking, which is good for them longer-term.
TOP PICK
This is a bank that has made some astute acquisitions that are going to work out incredibly well.
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