I stress fundamentals first ... charting, and models second ....
The 2009 "tax loss" selling, and end-of-the-year "re-positioning" by mutual funds in 2009 generated tonnes of cash ... which is now being fed back into the market ... and hence fueling this rally. Shorting into an on going market rally is a money losing proposition. Second, based on the fundamentals, like Book Value (BV) and Tangible Book Value (TBV) (to name two of my favorites), I would NOT short BAC:
Bank of America Corp BAC 1/5/2010 10:46 AM ET
15.94 0.245 1.56% 64,937,026
BV per share (MRQ) $ 29.79
Tangible BV per share (MRQ) $ 16.31
BAC is undervalued. Tangible book value, a post-global meltdown metric, strips out intangibles to give a "bankruptcy" snapshot of a companies' value ... and by these metrics ... which I render to multiple websites (and to my brokers) so those individuals putting cash back to work are looking for undervalued companies ... like BAC.
They finally got a CEO. He's going to start by cleaning up the credit card business.
Their out from under the governments TARP thumb. At 15.00 its a good buy.
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The 2009 "tax loss" selling, and end-of-the-year "re-positioning" by mutual funds in 2009 generated tonnes of cash ... which is now being fed back into the market ... and hence fueling this rally. Shorting into an on going market rally is a money losing proposition. Second, based on the fundamentals, like Book Value (BV) and Tangible Book Value (TBV) (to name two of my favorites), I would NOT short BAC:
Bank of America Corp BAC 1/5/2010 10:46 AM ET
15.94 0.245 1.56% 64,937,026
BV per share (MRQ) $ 29.79
Tangible BV per share (MRQ) $ 16.31
BAC is undervalued. Tangible book value, a post-global meltdown metric, strips out intangibles to give a "bankruptcy" snapshot of a companies' value ... and by these metrics ... which I render to multiple websites (and to my brokers) so those individuals putting cash back to work are looking for undervalued companies ... like BAC.
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Their out from under the governments TARP thumb. At 15.00 its a good buy.
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