Banking, finance, and taxes
Bank of America Earnings, Rising Tide Lifts All Ships (BAC, WFC, JPM, C, BRK-A)
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Bank of America Corporation (NYSE: BAC) was already the best performing DJIA stock with gains of more than 20% since the end fo 2011. Now it has even more legs after the troubled money-center bank posted a $2 billion profit in its fourth quarter. Earnings were more or less in-line with estimates at $0.15 EPS and revenue grew more than 10% to $25.1 billion.
Bank of America is trading at a healthy discount to its book value. The stated book value is $20.09 per share and the tangible book value is now up to $12.95. Even with a $6.80 pric after a 20% gain in two weeks, this is a steep discount. The Warren Buffett investment from Berkshire Hathaway Inc. (NYSE: BRK-A) looks like it may pay off now.
Bank of America was the last of the money-center outfits to report and shares are indicated up about 5.5% at $7.17 in active pre-market trading. The move is also good for other banks which have reported:
Wells Fargo & Co. (NYSE: WFC) is indicated up 0.6% at $30.42 and it trades above book value.
J.P. Morgan Chase & Co. (NYSE: JPM) is up 1.2% at $37.00 and Citigroup Inc. (NYSE: C) is up 1.6% at $29.50.
JON C. OGG
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