This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Top Investor: Don't Bypass Bank of America

Stocks in this article: GOOG BAC C GLVAX DEO

NEW YORK ( TheStreet) -- Bank of America (BAC - Get Report) may be suffering a lot of bad press, but it's a great franchise with a cheap valuation, says Randall Dishmon, manager of the Oppenheimer Global Value Fund (GLVAX), who also likes competitor Citigroup (C - Get Report).

The mutual fund, which garners four of five stars from Morningstar (MORN), has returned over 30% in the past year, putting it in Morningstar's 13th percentile for world stock funds. During the past three years, the Oppenheimer Global Value Fund has returned an average annual gain of 14%, placing it in the top 2% of all funds in this category.

Welcome to TheStreet's Fund Manager Five Spot, where America's top mutual fund managers give their best stock picks and views on the market in a five-question format.

With all the worry about a double-dip recession, why is the U.S. your favorite market right now?

Dishmon: Relative to other markets in the world, it's cheaper. The accounting and corporate governance is better, which provides more certainty on outcomes. And you've got an opportunity right now in the midst of this rough market for some great values.

Bank of America has clearly been struggling as a company of late. Tell me, why do you want to own that stock?

Dishmon: Bank of America is in the midst of a perfect storm and it has been for a couple of years. It's had bad press and pretty much everything that could go wrong with the bank has gone wrong. But what you've got at the heart of it is a great banking franchise. And at this point it is overcapitalized and it's trading at 75% of tangible book value. That's the value you would get if you broke it up and sold off the pieces. It's wildly misunderstood at this point, people will look back in a couple years and regret not purchasing that stock today.

On the other hand, a lot of analysts are upgrading Citigroup for the first time in a long time. What's your outlook for that company?

Dishmon: Citigroup is one of the best, if not the best, international banking franchises that has ever been assembled. It is also trading at a wild discount to tangible book value, again about 77%. And you can buy Citigroup today for less than the cash on its balance sheet. You don't get many opportunities like that. It's a wonderful franchise and a wonderful opportunity.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,478.05 -200.65 -1.14%
S&P 500 2,040.47 -16.62 -0.81%
NASDAQ 4,714.4810 -57.2820 -1.20%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs