A blog of my life, loves & just about everything in between...
Wednesday, July 6, 2011
"Bank of America" stock - undervalued? (BAC)
Keeping this short and sweet! 5 years ago B of A stock was somewhere around $60 a share! Today it holds strong around $10.75 or so. The simplicity of my analysis is... ALL OTHER BANK STOCKS fall around $20+ a share to date! Bank of America is the LARGEST BANK WHICH I KNOW OF! Therefore, to be able to buy shares around $10-$11 a share to me is something that requires little thought. Unless there is some unforeseen unknown diabolical disease in the mix, other than the obvious "Mortgage" issues... then, it seems to me B of A is definitely extremely undervalued. Look for B of A stocks to rebound in the next year or two, just after the bank owned housing has diminished and all these questions of mortgage and foreclosure issues have subsided.
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I wrote too soon! Bank of America tanked $1 this past week! It still should be a solid investment, I would buy as much as possible at this point, as soon as their legal issues with foreclosures go away, it should start to recover. :O)
ReplyDeleteOkay... don't buy at this point, they just threw me a curve ball!!! Cutting 40% in jobs and over 600 Bank of America branches shutting down!!! I would wait until after they tank the rest of the way and then buy! But then again, This is coming from a guy who would buy a beachfront property in Maine. WFT!
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