The accompanying table presents the 25 lowest-rated stocks in my US-based Regional Banking Index. The index contains a total of 99 companies with market caps between $500 million to $20 billion which are classified as either regional banks or savings and loan companies. The ratings for each company are calculated quarterly based on a formula which considers the price-to-book ratio, the trailing 52-week stock price performance, and the percentage of total market caps represented by each company.
If you are confident that Bank of America (BAC) won't go out of business, won't eliminate its dividend, and that its share price will eventually recover, you may want to consider buying its convertible preferred shares (BAC-PL) to wait out the storm.
Bank of America's convertible preferred (Series L) pays an annual dividend of $72.50 per share in quarterly installments. Series L's recent price is around $837 a share. That makes its yield over 8.6%. Unlike the majority of preferred stocks, which treat their payouts as interest payments, Series L pays a dividend eligible for the 15% tax rate f
Financials have staged an impressive rally from extremely oversold levels," says Kelley Wright, editor of the top-rated IQ Trends, which focuses on high quality, blue chip, dividend-paying stocks. Here's his top long-term buys among banks.
"It is increasingly evident that the banking sector is dividing into two distinct camps; the have's and the have not's. The 'have's' are:
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One year ago, at this time the world had plunged into the credit crisis episode. This year we saw the domino effect of the crisis, with massive writedowns from financial giants such as Citigroup, Wachovia and the filing of a class 7 by Indymac. In addition, to bolster consumer expenditure, the feds in the U.S. have been constantly cutting their overnight rate. Today, they have stopped doing so and have steadied the rate. It might be a sign! Out of all the banks that exist in the U.S., I think BAC will be ...
Crocodiles are ambush hunters, waiting for fish or land animals to come close, then rushing out to attack. As cold-blooded predators, they are lethargic, therefore survive long periods without food, and rarely need to actively go hunting.
In this time of pain and turmoil, investors need to come out of their defensive positions and find easy prey. The preferred shares of Bank of America [BAC-PJ] are that prey.
If you can look beyond the serious problems facing the banking industry, this may be a terrific time to buy Bank of America (BAC), one of the world’s strongest banks, at a steep discount to its true value and with a terrific dividend. That said, a purchase bears significant risk, as no one truly knows how the mortgage/credit crisis will play out or when.
Company/Stock Type: Large, mature growth company. Business = Domestic and international retail and commercial banking. Normally, this would be a stable business. But the banking and finance sector is beset with problems stemming from the st
You may think your greatest wealth building asset is the Chevron (CVX) stock you purchased 3 years ago. Even though your brilliant purchase has appreciated over 50% in the last 3 years in the face of a bear market, it is not your greatest wealth building asset.
A traditionalist would say your home is your greatest wealth building asset. This is getting closer, but it is not your greatest wealth building asset.
If the $700 billion government sponsored investment fund is not passed, then I believe there will be extreme pressure on Bank of America's balance sheet. With the mortgages they acquired from Countrywide as well as the CDOs and other securities instruments they will acquire from Merrill Lynch, they will need this facility in order to sell these securities and shore up their balance sheet.
TheStreet.com's Jim Cramer says the value creation at both companies is astonishing and not going away, despite the market trend.
Every now and then days like yesterday happen. Days where it is so crazy, where the selling never ends and the buying never ends. Where the sellers just keep reloading and the buyer just keep buying.
Some of it seems like short-covering panic and some of it seems like sellers who can't take the pain anymore. As I watched Cabot Oil...
My first position in Bank of America (BAC) was a 1/30 P on 6/4. Since then, I added a second position of 1/27.50s on 6/12. This week I added a third position of 1/22.50s on 6/24.
Everything I have read, and the credit climate I see, tells me this stock has the potential to drop down into the teens like Citi (C). While Citi has an unbelievable amount of exposure to the consumer lending market, BAC has a similar risk in its extremely heavy credit card portfolio.
If it has leverage....Sell it
- The melt down seems to have begun. The Commercial paper market has totally frozen up. The freezing of the CP market has major ramifications. Only the...
BAC bounce back?
- Considering all the ups and recent downs... I feel BAC has finally hit its low.... As an investment... I think today would be a good day to buy? Any t
And so it begins- CDS chickens come home to Roost
- As Jim Cramer would say Booya....or is it Boohoo? Really Jimbob, that was one of the worst calls of all time. Things aren't as bad as the seem they a...
Financials have staged an impressive rally from extremely oversold levels," says 
