Bank of America's stock again was the top performer in the Dow Jones Industrial Average on Wednesday, gaining nearly 4 percent on a relatively sluggish day for the market.
The Charlotte-based bank has now seen its stock rise 23.5 percent so far this year. It closed Wednesday at $6.87.
The Dow was down slightly Wednesday, closing 13 points lower at 12,449.
Bank of America's stock was the worst performer in the Dow last year, falling 58 percent amid ongoing mortgage liability concerns and several hits to the company's image. Interestingly, Netflix -- which saw its stock fall about 60 percent amid financial troubles and a controversial decision to split its business that backfired -- has been the top performer in the S&P 500 this year, up about 33 percent.
Analysts have long been bullish about bank stocks, citing "cheap" price to earnings ratios and improving underlying fundamentals. But the financial sector saw steep drops last year as European worries troubled investors.
Financials overall have performed well so far this year, heading into fourth quarter earnings season which begins later this week.
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14 comments:
when they move their headquarters to bermuda and the socialists can't get their hands on them anymore....stock price may go up X 10.
To anonymous 4:55, maybe if BOFA stops buying out faulty financial companies and companies like Countrywide, they might do better. I don't know where "Socialists" comes from. Did you hear Rush say that?
23.5% increase sounds pretty impressive... unless you're talking about a stock trading around $5...
John, the price of a stock does not matter. The only thing relevant in making money is the percentage. I rather have a $5 move 20% than a $300 stock move 1%.
@Anonymous 7:30: Unless of course that $300 stock is AAPL and you have held since 2009, and that $5 stock is BAC, and you've held since 2009.....
This stock is down 85% since 2007 and usage of any term such as "top performer" is asinine and stupid. But history and context don't matter when you're a clueless business reporter
Yep, what BH said.
What disgraceful shilling.
Did we have this "live ticker" of BAC every other day as it dropped from 53 back in 2007 to 3.95 in 2009?
If you bought this stock in the last days of the Reagan administration, you're DOWN, not even factoring in the inflation that BAC - as part of the Federal Reserve system - is complicit in creating.
The socialists should nationalize Bank of America and break it up into smaller banks. The same with Citibank.
Im buying plenty of BofA stock. Stock price is a value based on assets.
BH is right. Up 20% in 2012...it's 1/11/2012!
This company is destined for bankruptcy or nationalization. Rosy scenarios just don't cut it anymore.
They have all those floors, on the top of the new building, in New York, just waiting for something?
Any ideas why?
Wow, BofA shill?
I'm glad the other posters on here are awake enough to point out what a stupid article this is. A meager buck-eighty is little more than background noise in this context.
One other thing. BofA just pawned off 75 TRILLION in bad derivatives on the U.S. taxpayers. I expect that might have something to do with the tiny bounce in the stock, as some investors decide that must mean BofA stock isn't all crap. You should have reported that in the interest of full disclosure.
Of course, the FDIC doesn't have 75 trillion. The whole WORLD doesn't have 75 trillion. So as those mortgage bonds go bad, the Fed will end up monetizing the debt or default because we can't back stop that magnitude of debt.
But hey, at least BofA's stock went up 23% over the past few days.
Happy Days Are Here Again!
-Ken
http://www.LaserGuidedLoogie.com
BAC reality check:
http://www.zerohedge.com/contributed/large-bank-earnings-or-why-bac-went-4
Let's see if Howdy Doody and Brunette Barbie can understand it.
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