I decided to buy/sell/hold this stock because:
After analyzing the growth of Bank of America Corp (BAC) over the past 6 months, we had decided to purchase 100 shares of the stock at the price of $12.83 per stock. In the past 6 months, BAC has increased by 36.6% and has increased since April 2nd, 2012, a total of 58.23%. With this being said- it appears we have made a smart decision regarding our
investment in this stock. The price of this stock has gone down from $12.83 on March 20th, 2013 to it's current price on April 2nd, 2013 of $12.15. Even though the stock price is currently going down in the past few weeks, I'm not worried. I say this because the price of BAC fluctuates often but never hits a steep drop in value. The enterprise value/revenue for the ttm (trailing twelve months) is 3.42 meaning that the stock is currently trading at 3.24 times the sales per share as published in the most recent 4 quarterly filings. BAC is a multi-billion dollar corporation, holding down a solid 257.19 billion!! Bank of America Corporation is a bank in which I am confident will always succeed in the stock market. People will always rely on banks, Bank of America has promotions luring in more customers- AND- the existing customers will stay with BAC as long as they continue to thrive. Why would they ever go through the hassle of leaving for no reason if they are satisfied? This is why I will keep my stock, this is a long term stock that will not disappoint.
In the article I read, I found more points that support me wanting to keep the BAC stock and making me confident with my purchase of 100 stocks. Besides people complaining about how BAC is currently going downward, the bank was still the "best performing bank stock in the DOW despite all of the negative press." The quote following this says "There is no denying that BAC has fallen off from its prime time years during the 80s and 90s and also for a brief period in the middle of the last decade. Nonetheless, the question on investors' minds is whether the Big Four bank will have a turnaround in 2013." Yes, yes I do believe it will have a turnaround. BAC (which by the way is the nations second largest bank), has boosted its market cap to $124.81 billion dollars following the losses they suffered during the former CEO Ken Lewis' time as the leader of the company. Not to mention, BAC has a 46.51 P/E value, which matches up with the expectation of high-growth for the company this year! I'm not going to turn into a pessimist because of the low dividend yield right now standing at 0.34% because like I have said, in the long run it will thrive (BAC has a 5 year average dividend yield at 3.77%). Thus, I believe BAC will have a turn-around, raising up a significant percent in the following months this year. From personal experience, being a Bank of America member, I can say I have had zero problems with the corporation. They aren't confusing or annoying to deal with and don't spam my email everyday with new offers. They know their worth and continually satisfy their current customers and lure in more day by day with their service. BAC is quality, which is why I will keep my long-term stock.
11:21 PM |
Works Cited
Analysis Desk, Stock. "MarketConsensus." Why BAC Is a Good Buy in 2013. Market Consensus, n.d. Web. 02 Apr. 2013.
"BAC Key Statistics | Bank of America Corporation Com Stock - Yahoo! Finance." BAC Key Statistics | Bank of America Corporation Com Stock - Yahoo! Finance. Yahoo!, n.d. Web. 02 Apr. 2013.
-Nicole Tesoriero
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