{"id":59889,"date":"2014-09-05T06:07:38","date_gmt":"2014-09-05T10:07:38","guid":{"rendered":"http:\/\/countingpips.com\/?p=59889"},"modified":"2014-09-05T06:49:44","modified_gmt":"2014-09-05T10:49:44","slug":"bank-of-america-upgraded-to-buy","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/09\/bank-of-america-upgraded-to-buy\/","title":{"rendered":"Bank of America Upgraded to \u201cBuy\u201d"},"content":{"rendered":"<div id=\"inves-2765971473\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">September 5, 2014<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p>By <a href=\"http:\/\/WallStreetDaily.com\/\"><span style=\"text-decoration: underline;\">WallStreetDaily.com<\/span><\/a> <img loading=\"lazy\" decoding=\"async\" class=\"attachment-home-th wp-post-image\" style=\"margin-bottom: 5px; clear: both;\" src=\"http:\/\/www.wallstreetdaily.com\/wp-content\/uploads\/2014\/09\/WSD_Feature_MostHated_featured.jpg\" alt=\"Bank of America Upgraded to \u201cBuy\u201d\" width=\"510\" height=\"300\" \/><\/p>\n<p>By <a href=\"http:\/\/www.wallstreetdaily.com\/author\/robert-williams\/\">Robert Williams<\/a>, <em>Founder<\/em><\/p>\n<p>Imagine you\u2019re the CEO of a company, and you just agreed to pay a $16.65-billion settlement for unethical behavior.<\/p>\n<p>The settlement stemmed from a scheme your company hatched to bilk unsuspecting investors out of their hard-earned money.<\/p>\n<p>Now, imagine that your company\u2019s stock price traded higher on the news.<\/p>\n<p>Say what? Well, it just happened.<\/p><div id=\"inves-32180362\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p>Stranger still, the stock in question is headed even higher. Much higher.<\/p>\n<p>The stock, of course, is <b>Bank of America <\/b>(<a title=\"BAC on Yahoo Finance\" href=\"https:\/\/finance.yahoo.com\/q?s=bac&amp;ql=1\" target=\"_blank\">BAC<\/a>).<\/p>\n<p>The beleaguered bank recently agreed to pay $16.65 billion to resolve allegations that it sold toxic mortgage-backed securities, and lit the fuse on the financial crisis.<\/p>\n<p>It\u2019s the largest settlement between a single firm and the U.S. government in history.<\/p>\n<p>The settlement breaks out as follows\u2026<\/p>\n<ul>\n<li>Bank of America will pay a $5.02-billion civil penalty to the Department of Justice.<\/li>\n<\/ul>\n<ul>\n<li>Bank of America will part with $4.63 billion in compensatory remediation payments.<\/li>\n<\/ul>\n<ul>\n<li>Bank of America will push $7 billion toward consumer relief initiatives, like mortgage-reduction measures for folks struggling to pay their bills.<\/li>\n<\/ul>\n<p>By my count, this is the 43<sup>rd<\/sup> such settlement Bank of America has paid in regards to its involvement in the financial crisis.<\/p>\n<p>Back in March, the bank paid $9.3 billion to settle claims that it sold Fannie Mae and Freddie Mac faulty mortgage bonds, bringing its settlement tally to north of $50 billion. It\u2019s also worth noting that the bank\u2019s legal fees run into the billions of dollars, as well.<\/p>\n<table style=\"background-color: #eaefec;\" border=\"1\" width=\"200\" cellpadding=\"3\" align=\"right\">\n<tbody>\n<tr>\n<td>\n<h2>Instinct Oftentimes Trumps Fundamentals<\/h2>\n<p>Ironically, shares of <strong>BP<\/strong> (BP) plummeted yesterday when a judge ruled that the company had been negligent in the events leading up to the oil spill in the Gulf of Mexico.<\/p>\n<p>Some $9 billion were erased from the company\u2019s market capitalization in a single day, which is exactly the kind of market reaction you\u2019d expect from such negative news.<\/p>\n<p>In stark contrast to BP, however, Bank of America shares didn\u2019t budge on news of its culpability during the financial crisis.<br \/>\nIntuition should tell you that Bank of America shares are poised for an upside breakout.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>So, if you were curious which bank suffered the most collateral damage from the mortgage and foreclosure debacle, look no further than Bank of America.<\/p>\n<p>Nonetheless, shares haven\u2019t declined in the face of these latest two settlements. When a stock can take a $25-billion, one-two punch in the face\u00a0\u2013\u00a0and not flinch \u2013\u00a0it\u2019s worth a closer look.<\/p>\n<h2>The Next Move Is Higher\u2026<\/h2>\n<p>So why am I bullish on a stock that\u2019s typically regarded as the most hated among main street America?<\/p>\n<p>There are a few reasons, actually.<\/p>\n<p>For starters, insiders suggest that this latest settlement is the last of the majors to hit the bank, which CEO Brian Moynihan has since confirmed.<\/p>\n<p>More importantly, however, the settlements have already been priced into the stock. Had they not been, we would\u2019ve seen a ton of selling when the news hit. But we didn\u2019t.<\/p>\n<p>In fact, hedge funds bought Bank of America shares in the last quarter to the tune of $1.02 billion.<\/p>\n<p>Bottom line, the bank recently resubmitted a scaled-down stress-test plan to the Federal Reserve after its initial submission revealed an error that led to an overstatement of $4 billion in capital.<\/p>\n<p>This latest submission resulted in no changes to the bank\u2019s reported regulatory capital ratios for the first quarter of this year, and a change of less than 0.01% for the third quarter of last year.<\/p>\n<p>On top of that, the bank announced that it just successfully raised $3 billion in preferred stock.<\/p>\n<p>If you\u2019re looking for a stock with plenty of upside with a strong floor under shares, Bank of America definitely fits the bill.<\/p>\n<p>Onward and Upward,<\/p>\n<p>Robert Williams<\/p>\n<p>Founder, <i>Wall Street Daily<\/i><\/p>\n<p>The post <a href=\"http:\/\/www.wallstreetdaily.com\/2014\/09\/05\/bank-of-america\/\" rel=\"nofollow\">Bank of America Upgraded to \u201cBuy\u201d<\/a> appeared first on <a href=\"http:\/\/www.wallstreetdaily.com\" rel=\"nofollow\">Wall Street Daily<\/a>.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By WallStreetDaily.com By Robert Williams, Founder Imagine you\u2019re the CEO of a company, and you just agreed to pay a $16.65-billion settlement for unethical behavior. The settlement stemmed from a scheme your company hatched to bilk unsuspecting investors out of their hard-earned money. Now, imagine that your company\u2019s stock price traded higher on the news. [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-59889","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/59889","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=59889"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/59889\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=59889"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=59889"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=59889"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}