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Wednesday, April 16, 2014

$bac is okay

Scratching my head a bit wondering why the market thinks the current report is worthy of a 3% decline in the stock. 

From all accounts, the report was decent. The street factored in lower revenues, and BAC beat. The biggest headline factor was the effect of the litigations. Hit the bottom line more then expected.

The bank is still one of the few large banks trading below tangible book, and in relatively healthy shape. As the litigation risk slowly passes (as today represents chipping away of that risk) the stock should begin to approach tangible book.

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