NEW YORK ( TheStreet) - Bank of America (BAC - Get Report) shares were poised to take another crack at the $10 mark after eclipsing it on Monday only to drop sharply in late trading on rumors the bank was eyeing a secondary stock offering.
Bank of America shot down the rumors following the close of trading Monday, telling news outlets including
Reuters that, "contrary to market rumors
Following a dismal 2011, Bank of America shares are up more than 70% year to date as efforts to plug its capital hole by selling assets and issuing equity have satisfied regulators and calmed the market. Bank of America's first quarter earnings lit a fire under the stock largely due to evidence of the stronger balance sheet. That new confidence has pushed the shares higher still in recent days after the bank passed the Federal Reserve "stress test."
In the wake of that rally, however, analysts have urged caution. Many argue Bank of America's efforts to strengthen its balance sheet have considerably weakened its earnings potential.At first, the market seemed oblivious to those warnings on Monday as investors pushed Bank of America shares to $10.10, their highest levels since last July. Late in the trading day, however, the stock fell sharply on the secondary market rumors. The stock closed at $9.53. Bank of America shares were slightly higher, however, in pre-market trades on Tuesday . -- Written by Dan Freed in New York. Follow me on Twitter
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts