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No. of Recommendations: 3
Bank of America (BAC) NewsBite - Analyst Comments Hurt BAC
This from Market Intelligence Center:

Posted on Monday, February 25, 2008 10:09 AM
Bank of America (BAC) opened at $42.27. So far today the stock has hit a low of $41.85 and a high of $42.40. BAC is now trading at $42.11, down 0.49 (-1.15%). After hitting a one-year high of $53.15 last February, the stock hit a one-year low of $33.12 in January. Shares of BAC are trading lower with other banks this morning after an analyst at Oppenheimer cut earnings estimates for many major banks, predicting bank losses will be the highest in the past 20 years or more due to greater individual defaults on mortgages and other loans. The analyst cut BAC's first-quarter EPS estimate to $0.92 per share from $1.01 per share, and cut BAC's fiscal-2008 estimate to $3.65 per share from $4.10 per share. Technical indicators for BAC are bullish but deteriorating, while S&P gives the stock a positive 4 STARS (out of 5) buy rating. If you’re looking for a hedged play on this stock, consider a March bear-call credit spread above the $45 range. BAC hasn’t been above $45 by more than a few cents since December and has shown resistance around $44 recently. This trade could be risky if the US economy turns around, but even if that happens, this position could be protected by resistance BAC might find around $45, where the stock peaked in late January.
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