Bank of America Shares Could Double

AUSTIN, Texas (TheStreet) -- Thomas Villalta, manager of the Jones Villalta Opportunity Fund(JVOFX), says shares of Bank of America(BAC) could double this year as the company's write-offs decline and it reaps the benefits of the Merrill Lynch acquisition.

The $1.9 million large cap value fund has returned 65% during the past year, better than 99% of its Morningstar(MORN) rivals. The fund's largest holdings include Ford(F), General Electric(GE) and Microsoft(MSFT).

Welcome to TheStreet's Fund Manager Five Spot, where America's top mutual fund managers give their best stock picks in five fast and furious questions.

Are you a bull or a bear?

Villalta: We are bullish. We see a lot of value in the market at the current time. A number of factors should make 2010 a very good year for companies and for the market, including the fact that we are emerging from a recession, and corporate profitability should improve.

It is important to keep in mind that the intrinsic value of any stock pertains to its future prospects, not its current or past results. While we think the tenor of the discussion is relatively pessimistic in the press and on television, we think the stock market remains not only the best place to put money at the present time, but also very undervalued.

What is your top stock pick?

Villalta: Bank of America is our top pick for 2010. Even after significant dilution and write-offs, Bank of America still has more than $21 per share in book value and a stable of assets that should propel earnings as the recession winds down. Non-interest income, likely 50% higher in 2010 compared to 2008, will be a significant driver of value for the firm. The acquisition of Merrill Lynch will pay significant benefits. Moreover, as credit write-offs diminish, most will be surprised by how profitable Bank of America is.