Tuesday, January 11, 2011

Morgan Stanley Says: Buy Bank of America, Now (BAC; FAS; XLF)

BAC is trading up 28 cents at $14.68. We also like the warrents.
I don't say "Now" that often, once on this blog, some First Solar options.*
From MarketBeat:
Morgan Stanley banking analyst Betsy Graseck sees BofA shares bouncing over the next couple months, naming the shares as a “tactical idea” Monday. She writes:
With [Bank of America] trading below book and the cheapest in our group, we see additional near term upside because 1) GSE settlement implications for non agency losses (size and potential for settlement) and reduced reps/warranties tail risk; and 2) earnings release on Jan. 21 where we could see [Net interest margins] improving, credit continuing to improve and commentary around capital management.
Translation: Bank of America is trading below book value, a best-guess measure of the sum that could be raised if the bank liquidated all of its assets immediately....MORE

Corrected--Dick Bove Sees Bank America Worth $15 IN BANKRUPTCY (BAC) 
Susquehana Says: "Buy BofA and Wells Fargo Stock" (BAC; WFC; XLF)
Goldman Sachs: "Buy Bank 0f America Calls" (BAC; FAS; FAZ; XLF)
Jim Cramer: "Big banks are a buy" (C; BAC; JPM: USB; WFC)
"A Secret Route to Banking's Potential Riches" (BAC; HIG; JPM; WFC)
"Citigroup, Bank of America Up Six Times by 2015 Says Dick Bove" (BAC; C)

*First Solar: Trading the Dec. 14 Investors and Analysts Guidance Call--Buy it NOW (FSLR)

I mentioned such things in the Dec. 17 post:
Fertilizer Stocks: Pricing momentum will resume in January (AGU; CF; MOS)
I didn't go with Barron's full headline "Fertilizer Stocks to Buy Now" because I don't have a feel for the timing.
I've only used the "Now" formulation once, in last month's "First Solar: Trading the Dec. 14 Investors and Analysts Guidance Call--Buy it NOW (FSLR)" which resulted in a 17 day triple in the options.
We'll see if Gleacher & Co. has their timing down....