Tomorrow Bank of America
(NYSE:BAC) will report earnings. The company is expected to report Q3 earnings of -$0.07 EPS according to Thomson Reuters. We went to a Buy in this name back on August 24 (see A Look at Banking Stocks, Including Wells Fargo, Bank of America, and JPMorgan
). Bank of America is trading off 1.50% from its highs and has rolled over; we would not read anything into this. If you’re a long term investor, we suggest remaining long at this juncture.
We also mentioned this morning at 9:00 a.m. (pre-market) that Vikram Pandit's departure from Citigroup
(NYSE:C) was an opportunity to buy (see Vikram Pandit's Departure From Citibank Means Buying Opportunity for Investors -- But Wait!
). We had several emails this morning asking why we felt this way. For one, there was the positive price action off a solid earnings report. Another reason was that the regulators didn’t like Pandit. If you've ever been involved with a bank on the operating side, you would realize this is a big issue in growing a bank’s balance sheet. Citigroup is no longer the complex behemoth it once was, and it sold off many assets. It is easier to replace Pandit with a traditional banker now than it was prior to the divestitures of the other business lines.
Click to enlarge
Click to enlarge
For more from ChartLabPro.com, click here.
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.