by Sam Collins | September 18, 2013 1:35 am
Bank of America (BAC) — This is the second largest U.S.-based financial holding company with global assets of more than $2.1 trillion. Year-end reviews by Wall Street analysts resulted in upgrades. Reported earnings for 2011 were just $0.01. In 2012, the company earned $0.25. The newly revised consensus for 2013 is $0.91 and $1.36 for 2014.
On May 15, I wrote, “Technically, BAC broke from a 10-month cup-and-handle formation in early December, a clear sign of the beginning of a major move higher… The breakout confirms that BAC is still a strong buy. The immediate trading target is $15, but long-term investors could reap a much higher return.”
On July 23, the stock hit my trading target with a high of $15.03. Since then, profit-taking has taken a small bite out of these gains, and the stock has been stabilizing at its 50-day moving average.
The bull channel is powerful, momentum is strong, and MACD just issued a buy signal. Buy BAC at its 50-day moving average with a trading target of $20. As before, long-term investors could reap a much higher reward by holding this stock as a cornerstone investment.
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