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Bank of America (BAC) with a compelling entry point for long term investors

In Quick Pitch on July 31, 2011 at 11:44 am

Question to the technicians: Take a look at the 10 year chart of Bank of America (BAC). Would you short at this bargain price of $9.71 (as at July 29th 2011)? The price is at its 52-week low, it is short term oversold and the price being hammered in its long term downtrend. No? Great, now we’ve established that there’s substantial downside risk in shorting, let’s turn to the fundamentals.

Guru Trades

Bank of America is an unloved stock at this juncture, judging from the recent downtrend. However, it is a favorite among the smart money. Fairholme Fund, Bruce Berkowitz, David Tepper, John Paulson each owns about/more than 5% of the shares outstanding. Along with other institutional funds, this translates to 60% of institutional holdings out of the common stock outstanding/float of 10Bil shares.

Read more here Bank of America (BAC) with a compelling entry point for long term investors

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