Technical Analysis on Bank of America (BAC)
- BAC broke out from Ascending Triangle at $10.00 and heading towards the breakout target price of $12.00 (also 161.8% FR)
- RSI = 75 overbought region.
- Currently BAC has reversed to uptrend (above 20D, 50D and 200D SMA).
- Too late to chase now. Wait for the retracement back to $10.00 to test the resistance turned support for a better entry point.
Key Statistics for BAC
| Current P/E Ratio (ttm) | 18.5082 |
|---|---|
| Estimated P/E(12/2012) | 19.6348 |
| Relative P/E vs. SPX | 1.2722 |
| Earnings Per Share (USD) (ttm) | 0.6100 |
| Est. EPS (USD) (12/2012) | 0.5750 |
| Est. PEG Ratio | 2.0668 |
| Market Cap (M USD) | 121,684.50 |
| Shares Outstanding (M) | 10,778.08 |
| 30 Day Average Volume | 159,106,896 |
| Price/Book (mrq) | 0.5535 |
| Price/Sale (ttm) | 1.1136 |
| Dividend Indicated Gross Yield | 0.35% |
| Cash Dividend (USD) | 0.0100 |
| Last Dividend | 12/05/2012 |
| 5 Year Dividend Growth | -55.91% |
| Next Earnings Announcement | 01/17/2013 |
BAC’s P/B ratio is only 0.55+. Most stocks that are trading below book value are loss making companies. But BAC is generating good profits. Market is WRONG in pricing the share price too low. This stock will eventually trade above its book value, that means Price to Book ratio should go above 1.00. This means that upside potential is 100% to 300%, while downside potential is limited.
Upside potential is huge for BAC if we have patient to wait. Furthermore, fund managers able to put BAC into their portfolio now because it is no longer a penny stock in US! A gem to watch!