April 18, 2011 | In: Financial
BAC – You Have Been Warned
One of the worst bank stocks (of course with the exception of AIB and IRE) is BAC (Bank of America Corporation). This stock is in a downtrend since April of 2010, and everytime the stock breaks the $15 level, it goes down a few dollars. The stock reached a very low of $10.91 back in November (I used to own a lot of this damned stock by then, but still I made money as I waited until the end of the year to sell my shares).
The stock had a nice January Effect, but it just couldn’t sustain the momentum.
I still see that BAC is a good buy, but not on the short term, and not even on the medium term, they’re all very bearish. Bank of America is simply too big to fail, even with all its current problems. For now just stay away from this stock, stick to something better, more stable. An excellent stock to buy at the moment is C, the stock is a bargain at $4.44. I think it’s easy to see this stock trading over $6 by the end of the year (before taking the reverse split into consideration). C is trading at a P/E of 12.54, what better deal do you want?
Another stock that I really like and I think has a huge potential is MS (Morgan Stanley), the stock is trading at a P/E of 11.47 at $26.43 at the current moment. It broke the $30 barrier back in February, and I think it can do it again.