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No. of Recommendations: 3
Here's my dilemma. It seems like a good, solid company, low, low, p/e, great dividend ratio for a DRIP, and a great time to get in. We have some LTBH money that
could buy us 40 shares or so. So, is there a dark secret in the closet keeping this stock down? Have I missed something? Or is this just a great time to get in the back
door while everyone else is gambling on high-risk tech stocks?


Jody,

As far as I know, 'most' of BAC's dark secrets are out of the closet, which is why the stock is where it's at. With the beating NB had when it took over BAC due to bad business decisions on the BAC side (Russian investments, Junk bonds, Descrimination law suite, etc.) they have become the financial communities beaten step child. Add announcements that CA model bank is delayed until ?, questions concerning decreasing loan loss reserves to cover analyst expectations and increasing interest rates, things are looking pritty bleak, FOR TODAY.

Now for the bright side! 1 in every 3 US households banks with BAC...#1 provider of commercial and industrial loans worldwide...1MM internet abled customers...3.5MM hits per day...largest ATM network in the US...2nd to the Feral Reserve in check processing volume...etc...you get the picture.

BAC, in my opinion, is a solid LTH. I will not say that there are no more bumps in the road but long term, BAC seems to be a solid option to further investigate.

Or, should we jump in on the high-tech bandwagon (w research, of course), and come back to BAC in a year, when maybe it's back up to 55 or 60. I'm still kicking
myself for not getting AMEX at 67, 105, 119..... and now I'm just too cheap. Anyway, it seems the risk on BAC is much lower, but is the company as well positioned
as AMEX?

You're comparing apples to oranges when it comes to risk. You need to investigate your risk tolerence before asking this question to YOURSELF ONLY.
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