BAC has been beaten down just like all of the other retail bank stocks (I'm considering them in a different at category than financial companies such as Goldman Sachs). However, they seems to be on much stronger footing than their competitors. Look at Citi and Wachovia. BAC recently bought Countrywide (meaning they had the funds, though the debate is still out on if they should have). Can you imagine those two companies buying Countrywide as BAC did?
Another interesting point is the dividend, right now at around 7.00%. That is amazing! While there certainly is volatility with the stock, you have a nice buffer with such a rich dividend (and I and many other talking heads don't believe they will lower it as Citi did).
One thing that does concern me a bit are the offering of Preferred Shares of BAC. Citi was doing it to raise capital, and we all know why. BAC maybe just trying to also raise capital, but in a less desperate way.
I believe that BAC has a while to go before heading on the upswing. But on the upswing it will go. We'll see what tomorrow bring. If it drops to around $34, might just buy it.
