Bank of America (BAC) Buy, Sell or Hold

Bank of America (BAC)

50.56

-0.52 (1.02%)

as of Oct 23, 2026, 8:00:00 pm Market Closed.

708 watching

BUY

A wonderful play on the recovery of the market and the economy. They have the ability to generate a tremendous earnings power.

COMMENT

This one is on his watch list. Canadian banks have moved up a tremendous distance and are not interesting. (See Top Picks.)

COMMENT

Has struggled. Increase of dividend was turned down by the fed. They’ll eventually get it. Have a big wealth management area and stock markets are starting to percolate again but are losing on the real estate side.

DON'T BUY

This and CitiGroup (C-N) are the 2 banks that have struggled the most because of all the loan/loss provisions they had to deal with. Took on acquisitions that have not paid off yet.

TOP PICK

Still believes in this company. Canadian banks are trading at the higher end of their multiple range. 43% retail and the rest of investment banking and wealth management. Can make $2 per share, maybe $4. Great franchise.

BUY

It is difficult to know what is going on inside the company. He sold it in the spring of 2008. He would continue to hold it if you held it this long.

TOP PICK

(Top Pick Mar 10/10, Down 18.17) There is earnings power here of $2.50. Interest margins are on the rise. Expenses are going down. Default rates are starting to drop. Will create excess capital, which he thinks will be used to by shares back. 1.5 times book value, which is low. This one is a buy it and be patient situation. Different companies do the heavy lifting at different times.

RISKY

Put it back on the watch list about 2 months ago. Not as favorable as many of the smaller banks. Prefers C-N, although more risk. If it went under $10 or $12 he would be much more impressed. He is looking elsewhere, however.

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DON'T BUY

After a really good lift off the 2009 bottom, US banks generally under performed. Haven’t gone down but have not participated in the rally. Will likely under perform going forward. Could be a short bounce when dividends are declared.

TOP PICK

Sell Nov $16 puts and Buy Nov $11 puts. This bank will survive and will probably do all right. In effect he is Short $16 puts and is obligated to Buy shares at $16 between now and November. He has an out at $11. In a worse case scenario, if everything collapses, his risk is limited to $11. You get a $2 credit roughly.

HOLD

Long-term project coming off the 2008 financial system problems. Great franchise owning Merrill Lynch and Countrywide. De-leveraged and cheap at about 1X tangible book. Thinks they have $2.50-$3.00 earnings power. Good Hold, but a long-term hold.

DON'T BUY

As a rule he doesn’t particularly like the US banks. US is not out of trouble. Mortgage problems continue to haunt it. Pickup in their economy is very tepid.

COMMENT

Fundamentals are still rocky but getting better. Historically major US banks have done very well from around the end of January and moving into springtime. Hasn’t seen confirmation of this yet on a technical basis.

DON'T BUY

Hated this one for a long time but now has more competent management. There is still the legacy of prior management. There are better things to buy. He chooses not to own any US banks right now.

BUY

They are one of the banks that hurt their net equity position and is trading at a deep discount to book value (70% of book value). There is a reasonable opportunity for them to recover here. Retail side of business would drive things here. Need improvements in loan losses and we are starting to see that.

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Bank of America (BAC)