I bought BAC at an average price of $9.88 while realizing that the PE ratio was negative, PEG non-existent, Beta at 2.21, etc. Nothing good to say about this stock except that I had presumed that the mortgage related litigation's were behind them and that investors were selling the stock without realizing the upside. It looks as if that isn't the case. Now at $9.40 and the firm is slapped with another lawsuit. I'm not ready to give up on this stock just yet because the valuations still seem very cheap and the stock is trading below its 50 day SMA with the signals all pointing to the fact that the stock is oversold.
With the debt crisis fear on top of us and the rating agency in China downgrading the U.S., while the rating firms in the U.S. putting the country on a negative outlook, investors are running away from equities and finding shelter in fixed income products. This can prove to be a great buying opportunity for those that are seeking beaten up stocks which may have good upside.
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Note: This was first posted on: http://investmentsinsight.blogspot.com/
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Saliq
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