Bank of America Earnings, Rising Tide Lifts All Ships (BAC, WFC, JPM, C, BRK-A)
Bank of America Corporation (NYSE: BAC) was already the best performing DJIA stock with gains of more than 20% since the end fo 2011. Now it has even more legs after the troubled money-center bank posted a $2 billion profit…
Bank of America is trading at a healthy discount to its book value. The stated book value is $20.09 per share and the tangible book value is now up to $12.95. Even with a $6.80 pric after a 20% gain in two weeks, this is a steep discount. The Warren Buffett investment from Berkshire Hathaway Inc. (NYSE: BRK-A) looks like it may pay off now.
Bank of America was the last of the money-center outfits to report and shares are indicated up about 5.5% at $7.17 in active pre-market trading. The move is also good for other banks which have reported:
Wells Fargo & Co. (NYSE: WFC) is indicated up 0.6% at $30.42 and it trades above book value.
J.P. Morgan Chase & Co. (NYSE: JPM) is up 1.2% at $37.00 and Citigroup Inc. (NYSE: C) is up 1.6% at $29.50.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
