Bank of America Corp (NYSE:BAC)

Simply undervalued

Buffett, the most scrupulous and saavy financial analyst of them all, sees something in Bank of America. Just because the media treats B of A like the fat kid in elementary school doesn't make their thoughts/actions right. People are reacting the same way they did in 2009. Oversold. Who knows when the right time to buy will be, but "in the short term the stock market is a voting machine, in the long term it's a weighing machine." At some point Bank of America's intrinsic value will start to show it's true colors. Certainly not crazy enough to oversee the potential losses from litigation, but not crazy enough to oversee the reality that Bank of America affects nearly 1 out of every 2 American's who, over the next 15-20-25-30 years are going to need mortgages, car loans, lines of credit, savings accounts and the whole works. The law of averages suggests that, at some point, Bank of America will either see critical losses (which would be financial meltdown of 2008/2009 times 10) or the stock will recover and get in line with book value. Feel free to hate on Bank of America, but don't hate on those who ignore the rhetoric, buy the stock, and make serious money.

Lots of Greece drama going on right now, but will probably be $12-15 in a couple years.

BoA has made some really horrible business decisions including Countrywide. ML has actually been a benefit to BoA. However, charging for bank entry was one think. Their recent decision to charge monthly charges for debit card transactions is another. This one has received such negative press and will probably lead to loss of customers. They will have a short term increase in profits, but a long term decrease in customers.

5 dollars a month for a debit card with next to no interest on my checking account? I, along with thousands of other BAC customers will be saying "no thanks" and moving our money elsewhere.

Contracting bottom and top line growth due to bone-headed move combined with unfavorably macroeconomic trends.

Their plan to gut their customers for debit fees is going to be a PR battle that they will lose. It was banks like this that made the debit card to get people off of cash, and now they want to charge their customers extra for it? Their customers had nothing to do with congress passing new rules for debit cards, the merchants were responsible for that. Like most large banks, they look at numbers and figures and bottom lines, and forget who their customers are. I do not bank here, I bank with a credit union, and I think that is where many BAC customers will go...

Bank of America is everyone's favorite whipping-boy right now, but the shares are cheap, cheap, cheap. If they ever get things straightened out and overcome the continued liabilities from the Countrywide acquisition (possibly the dumbest acquisition made around the time of the credit crisis), the stock will have significant upside.

Good idea here. Lot's of people here are saying there is significant downside risk, but I don't think it's as bad as the markets planned for. That's partly why Warren Buffett is getting in. I'm looking for an easy double within 3 and triple in 5. Once they get their act together. May follow later in RLP.

Too big to fail. Priced too cheap to ignore.

Risky investment, but big upside potential.
who knows how they will deal with all the Counterywide mess? maybe they find a way to cut this beast off (legally)?
Will the government allow this truly national banking franchise to disappear? Probably not, and such seems Buffett to reason.
Is it the bottom? maybe not, yet..
But it looks like an acceptable entry point.

To big to fail @ a nice price point
Total Debt / Equity    2.32
Price Earnings    N.A.
Price/Sales    0.57
Price/Book    0.31
Price/Cash Flow    -3.90

Love em or hate em, they are the bank others copy.

Why BAC shareholders must pay for all the sins of Countrywide and the blunders of it's leaders? BAC shareholders deserve better.

Not well run but extremely cheap. I'll bet that the Berkshire vote of confidence helps them out of the hole.

BofA is struggling right now, but it will not fail. They will be back.

With the market starting to slightly turn around and this stock being at near a 52-week low, I think it is time to BUY BUY BUY!

foreclosures and incompetent employees with put BAC out of business

Banks are down. BAC will rocket in a month or so.

too many bad loans