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 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

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!