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Friday, December 30, 2011

Bank of America (BAC): How Low Will it Go?

Closing in on the end of 2011, Bank of America (NYSE:BAC) has the dubious distinction of being the worst performer in the Dow, plunging about 60 percent on the year, depending on where they end today.

The question is of course how low this shrinking bank and share price can go, and how much more market cap they'll lose, after having $80 billion slashed in 2011.

Other than slashing more expenses and selling off more assets, there is no clarity of how the bank is going to grow going forward.

The enormous amount of litigation hanging over the company is a major variable which disallows for any type of stability and consistency in the performance of the company; something investors are especially looking for heading into 2012.

Add to that the potential fallout from the sovereign debt disaster in Europe, and the overall financial sector is volatile and weak, with uncertainty rank among investors.

This isn't an undervalued stock, it's a stock deserving every bit of the beating down it's getting, as major investors have found out when attempting to buy it at lower levels, which now seem to have no bottom to them.

With no apparent growth strategy in place, Bank of America will continue to be under pressure in 2012.

Bank of America was trading at $5.45, down $0.01, or 0.09 percent, as of 11:39 AM EST.

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