New York- What a week it was for the majority of the ten largest banks in America. It was a week of profit, it was a week of more profit; it was the tale of Wall Street irrationality. It all started on Monday when Citigroup, the nations third largest lender posted $2.1 billion of profit and topped estimates. Everything was going great; the sun was shining; things were looking up and banking stocks roared. Then on Tuesday, Bank of America the nations largest bank came up to bat, BAC said they had earned earned $3.1 billion and everyone jumped for joy. But wait just a minute said investors, why does their income statement show a 7.3 billion dollar loss? What is happening with the foreclosure scandal? Why is my tea cold? It must be Bank of America's fault and this quiet optimism soon faded into the night like a distant dream. Wells Fargo and the other banks plummeted as BAC said sorry guys.
San Francisco's own Wells Fargo was up next, they said thanks BAC but we'll take it from here and "we'll go far," as they announced a record $3.34 billion of profit. Investors remained tepid at first, as they were ready to crush the bank stocks for a second straight day. Wells Fargo sunk 2% in the pre-market, but then they said what the heck this is a great stock, lets buy it and the stock roared 5%. Then it was U.S. Bancorp's turn, the nations 5th largest lender reported a profit of $871 million but investors did not know what to do, and kept the stock flat on the day. Today they decided it was actually a great report and the stock rose 2.3%.
PNC, Sun Trust and BB&T reported today. PNC soared as the company recorded a near record profit. Investors were relieved when Sun Trust Banks reported their first profit in over a year and BB&T shares sunk when they announced $210 million of profit.
And that was the banking week in America, completely illogical, irrational, but very enjoyable to watch from the outside.
Showing posts with label Bank of America. Show all posts
Showing posts with label Bank of America. Show all posts
Saturday, October 23, 2010
Thursday, October 21, 2010
Shroud of Uncertainty (NYSE: BAC)
NEW YORK - Shares of the Charlotte, North Carolina based bank continued to tumble following it quarter three results, where the bank recognized an adjusted $3.1 billion of profit or 27 cents a share. When the bank posted its results its shares traded at $12.35, today they trade at 11.36, which is a decline of 8%. The company has increased its common equity ratio to 8.5%, which is well above the minimum that will be required by Basel regulators.
The shares have tumbled as they have been hit by analyst downgrades and fear. In its conference call the bank said it added $370 million to its provisions for the foreclosure scandal. The current scandal sweeping the nation, involves bank employees foreclosing on homes without necessary documentation. This has surrounded the bank with a shroud of uncertainty as investors have taken the approach of sell first ask later. Despite the weak share price results, the company has improved its financial strength over the last year.
To see our full BAC report Click Here
The shares have tumbled as they have been hit by analyst downgrades and fear. In its conference call the bank said it added $370 million to its provisions for the foreclosure scandal. The current scandal sweeping the nation, involves bank employees foreclosing on homes without necessary documentation. This has surrounded the bank with a shroud of uncertainty as investors have taken the approach of sell first ask later. Despite the weak share price results, the company has improved its financial strength over the last year.
To see our full BAC report Click Here
Tuesday, October 19, 2010
The Bank of America "Sell Hoff" (NYSE: BAC)
NEW YORK- Bank of America shares are currently off 0.41% after being down nearly 2% earlier in the day. A "sell hoff" is Wall Street jargon for an illegitimate hoax sell off. The bank headquartered out of Charlotte North Carolina posted $3.1 billion of profit or 27 cents a share not including the $10.4 billion for the impairment of good will. With this charge the bank lost $7.3 billion. The bank saw its tier 1 common equity ratio rise to 8.4% and improved its tangible book value to $12.94 a share from $12.14. BAC also said non performing loans declined. Despite this positive news the stock is still currently down on the day.
Bank Posts A Real Profit(NYSE: BAC)
NEW YORK- Third quarter results released by banking giant, Bank of America showed Net income of $3.1 billion or 27 cents. This is with the exclusion of a goodwill impairment charges for $10.4 billion when including this BAC posted a loss of $7.3 billion. Allan Edwards the CEO of The Markets Are Open said "the results were impressive while interest income was essentially flat, BAC had continuing loan quality improvement." The company has increased its common equity ratio to 8.45% which is well above the minimum that will be required by Basel regulators by 2014. Basel regulators currently feel 4.5% is the minimum common equity ratio with a 2.5% buffer or 7%. Tangible book value increased to $12.91 from $12.14 in the previous quarter. Non performing loans decreased by over 1 billion dollars.
BAC stock is currently up 3 cents in the premarket or 0.24%
BAC in Action (NYSE: BAC)
Bank of America Corporation (NYSE: BAC) the nations largest bank is set to report quarterly results on Tuesday before the bell. Analysts expect the company to report between $0.09 per share on the low end and $0.25 per share on the high end. The consensus estimate is for $0.16.
The bank stocks have been repeatedly bashed by negative headlines and short sellers.
Bank of America is expected to give clarification on foreclosure scandals that some estimate could cost the banking sector over $80 billion.
The financial sector has greatly underperformed the market year to date. Investors are looking for positive results to revive bank stocks and dissipate the pessimism.
To read Edwards' full BAC report, click here.
The bank stocks have been repeatedly bashed by negative headlines and short sellers.
Bank of America is expected to give clarification on foreclosure scandals that some estimate could cost the banking sector over $80 billion.
The financial sector has greatly underperformed the market year to date. Investors are looking for positive results to revive bank stocks and dissipate the pessimism.
To read Edwards' full BAC report, click here.
Monday, October 18, 2010
This is How We "Douze" It (NYSE: BAC)
New York- Bank of America stock is back to Douze in French or in English twelve. The largest bank in the United States and one of the ten largest in the world passed the humbling number earlier this morning after initially struggling and reaching a low of $11.83 a share. Bank of America is set to report its Q3 results Tuesday morning. Investors will look if the bank is still continuing to have problems with its troubled Country Wide Financial and Merill Lynch. Investors will also ask for an update regarding the banking giants role in the foreclosure scandal that has rocked the nation and caused a temporary moratorium on current foreclosures.
BAC to Twelve (NYSE:BAC)
New York- Bank of America Corporation is "back" above $12 a share after flirting with the $11 dollar figure for some of the morning. Shareholders are bidding up Bank of America stock as they have noticed that beleaguered bank Citigroup has a market capitalization of $118 billion which has closed in on Bank of America's $120 billion. This is despite the fact BAC has over $400 billion more assets.
Citigroup has been able to attain a similar market cap as of today as compared to BAC despite the government still having ownership in the bank and that Citigroup currently operates in two segments Citicorp and Citi Holdings due to its problems.
Citigroup has been able to attain a similar market cap as of today as compared to BAC despite the government still having ownership in the bank and that Citigroup currently operates in two segments Citicorp and Citi Holdings due to its problems.
Friday, October 15, 2010
Banking Worries Are Bac; Outlook Gloomy (NYSE: BAC)
Bank of America Corporation (NYSE:BAC) hit a fresh 52-week low today after General Electric (NYSE: GE) reported poor banking results for its financial component, GE Capital. Investors were negatively surprised when General Electric blamed its Wall Street "miss" on reduced assets at GE Capital. GE's financial unit, a small division of GE, and a bell weather for the entire financial sector, sent the whole group back down to new lows.
The financial sector, in particular Bank of America, has been beaten down since mid April. The stock reached a low of $11.74 today, valuing the company's market capitalization close to Citigroup levels. These valuations have not been seen since emerging from the 2009 recession lows.
Investor sentiment weakened, as the sell off continued and short sellers moved in. Lawsuits were estimated by one analyst to be over $80 billion for both JP Morgan and Bank of America over home foreclosures.
"I estimate that the lawsuits could come in at over $80 trillion," joked Andy "Raw" Kibbens, co-CEO of The Markets Are Open. "But seriously, this is not the next BP as I heard some people on the Street were saying this morning. BAC has the government's backing. Bernanke knows what he's doing. I have confidence in the US economy."
To read Edwards' full report, click here.
The financial sector, in particular Bank of America, has been beaten down since mid April. The stock reached a low of $11.74 today, valuing the company's market capitalization close to Citigroup levels. These valuations have not been seen since emerging from the 2009 recession lows.
Investor sentiment weakened, as the sell off continued and short sellers moved in. Lawsuits were estimated by one analyst to be over $80 billion for both JP Morgan and Bank of America over home foreclosures.
"I estimate that the lawsuits could come in at over $80 trillion," joked Andy "Raw" Kibbens, co-CEO of The Markets Are Open. "But seriously, this is not the next BP as I heard some people on the Street were saying this morning. BAC has the government's backing. Bernanke knows what he's doing. I have confidence in the US economy."
To read Edwards' full report, click here.
Sellers Bank on America's (NYSE:BAC) Weak Stomach (NYSE:WFC)
New York- Bank of America and Wells Fargo stock has continued to drop on foreclosure worries. The scandal involves foreclosures on houses by the banks without the necessary documentation and the foreclosure of houses using robo-signers which is when workers involved in forclosures indicate the documentation is present when it is not. It has been reported Xee Moua a vice president of loan documentation for Wells Fargo, the second-largest US mortgage servicer, had pushed through 500 foreclosures a day.
Bank of America Stock is currently down 1.7% and Wells Fargo stock is down another 1.5% after both stocks dropped 5% yesterday. To put this into market capitalization perspective Wells Fargo has lost 7.7 billion dollars and Bank of America has lost 9 billion dollars of value. These numbers appear to be disproportionate to the amount J.P. Morgan has set aside for future claims regarding the foreclosure amounts.
It just proves time and time again when anything is uncertain the Wall Street traders short or sell even when it doesn't make any logical sense.
Bank of America Stock is currently down 1.7% and Wells Fargo stock is down another 1.5% after both stocks dropped 5% yesterday. To put this into market capitalization perspective Wells Fargo has lost 7.7 billion dollars and Bank of America has lost 9 billion dollars of value. These numbers appear to be disproportionate to the amount J.P. Morgan has set aside for future claims regarding the foreclosure amounts.
It just proves time and time again when anything is uncertain the Wall Street traders short or sell even when it doesn't make any logical sense.
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