BAC is trading at it tangible asset value, which is basically what it is worth if it sold everything today. If you include its tangible assets, this should be trading in the 20s. hold 6 months and you will be greatly rewarded. All the weak hands are gone now and shorts are screwed very shortly.
Possibly. BAC is trading on its REPORTED tangible asset value. If there is some lingering liability through the mortgage mess or some fraudulent activity, that could reduce the true tangible asset value to a fraction of what we think it is today.
Always be careful. Those that bought Enron, MCI, etc., all were caught off guard because they didn't question anything. Remember Bernie Madoff? All his investors just took him at his word. Maybe everything is OK at BAC, but ask questions; lots of questions.