Has been a while since someone on WSO said BAC is a buy buy buy. Seems even Dick Bove is admitting he has been wrong all year.
http://ftalphaville.ft.com/blog/2011/11/28/767031/why-i-was-wrong-by-dick-bove/
What you all think? More pain still coming?
Dick "Lehman" Bove. lol The fact that BAC was fighting profitability for the end part of the trading day says something. Today was a day that I think could show the obvious bad stock. For example, GRPN and LNKD were down. And since the judge ruled Citi's mortgage payout too small, what does that spell for BAC? I think that there's a lot of downside still for the stock- at least enough for me not to want to jump in yet.
"And since the judge ruled Citi's mortgage payout too small"
I thought I read his decision was based on how this was a matter of public importance and if this does not go to trial the general public will never have access to the details they desire. I think if they put a zero on the settlement, he would have ruled the same.
Also, the title of the article is a bit misleading since he closes with the thought that he's more early than wrong: Presumably, at some point, fear will either be realized or dissipate. My assumption is it will dissipate. At this point, the industry’s fundamentals will drive bank stocks much higher. This was my view at the beginning of 2011 and it is my view at present.
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BAC isn't going anywhere. Just like Bove explains, it's all market irrationality. I wouldn't be betting on the downside, especially at these levels. I do think bank stocks will remain stuck to these recent ranges until something in the macro changes.
I'm not saying BAC is gonna go to 0. I'm saying I wouldn't buy it yet.
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