Stock Alert for Bank of America Corp. (BAC)
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    Stock Alert for Bank of America Corp. (BAC)

    Bank of America Corp. (BAC), a financial holding company, provides a full range of banking, investing, asset management and other financial and risk management products and services to individual consumers, small- and middle-market businesses and large corporations.  It serves approximately 57 million consumer and small business relationships with approximately 5,700 retail banking offices and approximately 17,750 ATMs and online banking with 30 million active users. BAC offers support to about four million small business owners through a suite of innovative, easy-to-use online products and services.  It serves clients through operations in more than 40 countries.

    Share Statistics (26-Mar-12)   FY

    2010

    FY

    2011

    %

    Chg

    Q4

    2010

    Q4

    2011

    %

    Chg

    Symbol BAC Revenue, $Mn
    Current price $9.93 Gross marg.
    52wk Range: $4.92-$13.88 Oper. margin -0.25% 9.77%
    Avg Vol (3m): 299,556,000 Net margin
    Market Cap. 106.57B              
    Shares Outstanding 10.73B EPS, $ 0.64 0.27 -57.81% 0.01 0.20

    Source: Reuters.com, SEC Filings.

    Investment Highlights

    Shares in BAC inched up 0.81% to close at $9.93, extending gains into a second trading session. Over 240 million shares exchanged hands during the session, versus the 10-day average of over 444 million. The stock is currently below its 50-day moving average of $8.38 and above its 200-day moving average of $6.80. Market capitalization currently stands at $106.57 billion and it has 10.73 billion outstanding shares.

    Shares in the banking giant have gained 4.2% in the last five days and 26.0% in the last month.  Year-to-date, the stock is down 25.6%.

    Investors boosted shares in BAC on Monday as Motley Fool senior analyst Anand Chokkavelu speculated that stock could double to $20 a share — a level it hasn’t touched since November 2008.  Yesterday, the shares traded in the range of $9.85 to $10.04, compared to 52 -week range of $4.92 to $13.88.

    In a video online, Chokkavelu discussed how it is possible for the stock price to achieve a 100% increase.

    “With all the fanfare about Bank of America’s jump from $5 a share just a few months ago to around $10 now, Anand considers Bank of America’s prospects to double again to $20 a share. He determines that it’s not as far-fetched as you may think, barring any huge macro shocks. It will take a focus on the basics and some time, but Anand believes another double from here is quite possible.”

    Source:

    http://www.fool.com/investing/general/2012/03/24/how-bank-of-america-gets-to-20-a-share.aspx

    Financial Summary

    BAC reported net income of $2.0 billion, or $0.15 per diluted share, for the fourth quarter of 2011, reversing a year-ago net loss of $1.2 billion, or $0.16 per diluted share. Revenue, net of interest expense, on a fully taxable-equivalent (FTE) basis rose 11% to $25.1 billion.

    For the full year, the Company reported net income of $1.4 billion, or $0.01 per diluted share, compared with a net loss of $2.2 billion, or $0.37 per diluted share in 2010. Revenue, net of interest expense, on an FTE basis declined 15 percent to $94.4 billion.

    Source:

    http://mediaroom.bankofamerica.com/phoenix.zhtml?c=234503&p=irol-news&nyo=0

    Financial Strength (26-Mar-2012)

    Company

    Industry

    Sector

    Quick Ratio (MRQ) 0.00 0.22
    Current Ratio (MRQ) 0.00 0.48
    LT Debt to Equity (MRQ) 187.65 44.43 77.39
    Total Debt to Equity (MRQ) 296.54 183.72 171.56
    Interest Coverage (TTM) 0.00 0.17

    Source: Reuters.com, SEC Filings.

    Technical Analysis

    Source: http://stockcharts.com

    BAC is presently near its upper Bollinger Band. This suggests that it is at a high level relative to recent action.

    The MACD for BAC currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Mar26-2012 symbol Share, $ $ Mn 2012 2013 2012 2013
    JPMorgan Chase & Co. JPM 46.17 174.15B 9.70 8.38 1.77 1.7
    Wells Fargo & Co. WFC 34.39 181.35B 10.71 9.47 2.23 2.16
    Regional – Mid-Atlantic Banks Median       13.92 n/a 1.61 n/a
    Bank of America Corp. BAC 9.93 106.57B 14.6 9.28 1.16 1.12

    Source: Thomson Financial

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