Bank Of America Stock – Trade Alert and Trade Ideas for Sept 12 2014

With the fines and continual cloud of government intervention and lawyers finally largely out-of-the-way the healing can begin with Bank of America Stock. At one time under the stewardship of disgraced CEO Ken Lewis Bank of America was built into the second largest bank in the United States. His vision though seemed to fail in 2008 when he overpaid for failing Countrywide Financial despite unrest among shareholders and many senior members of the board of directors. Lewis went further however and during the financial credit crisis with stocks reeling he engineered the takeover of Merrill Lynch at a staggering cost of $50 billion. In January 2009 Bank of America earnings showed stunning losses at Merrill Lynch of $21.5 billion and the bank required an immediate cash infusion of $20 billion from the Federal Government.

Sheila Blair, the Federal Deposit Insurance Corporation Chairman at that time criticized the acquisitions stating that both Merrill Lynch and Countrywide Financial “were two of the sickest financial institutions in the country.” Blair later commented that Bank Of America had been healthy prior to these acquisitions as the financial credit crisis and bear market of 2008 to 2009 escalated. In September 2009 Lewis retired and the Bank has spent much of the years since trying to settle a myriad of claims and pay fines to the point where the latest agreement reached should pave the way for Bank of America to rebuild.

The 10 year chart below shows the staggering declining of the stock from $50 to below $6.00. I am expecting in the short-term that Bank of America should be able to now push to around the $20.00 valuation sometime over the next year, a valuation it has not seen since 2008.

Bank of America 10 year stock chart

Here are the three trades I did this morning in Bank of America stock.

Trade Alert and Trade Ideas for Bank of America Stock

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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.