Are Kind Words Really Behind the Bank of America Corp (BAC) Rally?

Page 1 of 2

Bank of America Corp (NYSE:BAC) started this week a little under the weather, which didn’t surprise me, since it had quite an eventful weekend. Online and mobile app outages and telephone problems plagued the big bank, in addition to news that it may owe more than it bargained for to private mortgage-backed securities investors with whom the bank settled up almost two years ago. What amazed me, in fact, was that the big bank’s stock hadn’t fallen more than it did.

On Tuesday, the stock really took off, taking the red ribbon for boosting the Dow Jones Industrial Average . Right around noon today, the big guy was showing a rise of nearly 0.5%.

Bank of America Corp (NYSE:BAC)Complimentary remarks all around
What’s going on here? Yesterday, fellow Fool Matt Thalman noted that B of A’s horn had been honked by investing wunderkind Bruce Berkowitz late last week. In comments at a conference in New York last Thursday, Berkowitz said that his Fairholme Fund, ever so profitable last year and now closed to new investors, is top-heavy with stocks such as Sears Holdings Corporation (NASDAQ:SHLD), American International Group, Inc. (NYSE:AIG), and B of A. He had nice things to say about each, particularly Bank of America — whose Countrywide troubles he considers a “fixable problem.”

Berkowitz also stated, in an interview with Bloomberg, that he expects both AIG and Bank of America to quadruple over the next five to seven years. Wow.

As if that wasn’t enough to make the big bank blush, Guggenheim analyst Marty Mosby sang its praises on Monday, along with fellow financials U.S. Bancorp (NYSE:USB), Citigroup Inc. (NYSE:C) , and Wells Fargo & Company (NYSE:WFC) . Mosby considers B of A and Citi recovery plays, while Wells was one of his top picks. Still, he pegs both Citi and Bank of America as picks with “more than 30% upside potential.”

How long will the afterglow last?
With all these accolades, it’s no wonder B of A is riding high. Certainly, a combination of these two opinions did the trick, and US Bancorp, Citi, and Wells all appeared to rally on Tuesday as well, after the Mosby article came out. For Bank of America, however, the question is: How long will it last?

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Top Reasons For Getting Fired

The 3 Best States to Start an LLC

10 Jobs That Allow You to Travel

7 High-Paying Jobs You Can Do From Home

12 Best Cities to Shop in USA

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!