Ever since someone mentioned a price of $6.01 as in the price below
which Bank of America shares should not go.....That seems to spook
the market. It is just a level, not some magical figure which will
shake the financial clouds.....
Bank of America is well-supported, Warren Buffett having injected
$5 Billion not so long ago, and also $5 Billion having been invested
by an Indian multi-billionaire about 8 months ago....
The task ahead for BAC is to capitalise on their physical assets, for
example the houses on which they gave mortgages but which are
now lying empty. Those houses need to be sold. This is a process
which will go hand-in-hand with the recovery in the Housing market
in the U.S.
Since the Oracle of Omaha is a long-term value investor, I feel
BAC will start to do well over the medium to long term.
Let's de-spook the market as far as Bank of America is concerned.
It is a solid stock which will do well.
I rate it a Buy.