by Capital Traders Group
The financial sector appears to still be undervalued relative to the S&P 500, despite its massive run-up since the lows of the financial crisis and I believe Bank of America is leading the pack of undervalued U.S. bank stocks.
maybe in several years. However, current litigation and additional pending court losses will probably result in a PPS much lower than it is right now. A summary judgment on Successor Liability is right around the corner. although this is a relatively small amount of $$ for BAC the implications it will have on their Article 77 proceedings is huge with potential put back losses of approx. 30 to 40 BILLION...
IMHO looks bullish for price rise above 13.50 by April 20 option expiration. Granted I'm a long-term holder and believe that recent pullback is just another short-term consolidation. Keep in mind, a lot of "bad news" is still priced into the stock and the 5 billion common and 5 billion preferred buyback adds a layer of support for this stock.