Today’s bad economic report resulted in a sell off in the general market. As a result, all stocks are down.
This seems to be a buying opportunity as the fundamentals of Bank of America Corp are still very sound.
Watch the NON FARM PAYROLL tomorrow, if it is positive, load up BAC any price below $14.90
Target is still $18.1
Stay neutral if the report comes out sour.
Bank of America Corp should be trading higher than August levels, as the tangible book value has gone up.
Compare it to Wells Fargo & Company (NYSE: WFC) which is trading at $27 (more than its offering price of $25) and more than 1.8X book value, BAC is only trading at 1.25X book value (lower than its $15 offering price).
Credit is becoming better. The fear of US debt is overdone by Moody. Let’s just wait for the news report tomorrow.
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