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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks Your Pension Fund Loves

Stocks in this article: BAC VWO EMC GGP TYC

Bank of America

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

First up is Bank of America (BAC), the controversial $75 billion banking giant that's been at the center of so many headlines in the past few years. Pension funds bought up 19.2 million shares of BAC in the most recent quarter, hiking their quarter-billion-dollar stake in the bank by close to 10%.

Bank of America is cheap right now -- it's one of the big bank banks that trades for less than its tangible book value for share. But that bargain price is for good reason. The firm's labyrinthine balance sheet includes significant legal liabilities from its Countrywide acquisition in 2008 and massive exposure to bad debt. The fact that Bank of America is hard to value right now is one of the biggest reasons for its discount, but as sophisticated investors start to gain assurance over BofA's balance sheet, retail investors should take notice.

>>5 Large-Cap Bank Stock Buys From Guggenheim

And on the flip side, the bank has scale advantages that only a handful of names can boast, including a mountain of cheap deposits that it's lending out with higher underwriting standards than in years past. With reasonable equity reserves in place right now and an income statement that's becoming less susceptible to landmine one-time expenses and charges, BofA may become less cheap quite soon.

While risks are still high enough to argue against too concentrated of a position in BAC, risk-hungry investors could do well to dip a toe in this bank.

Bank of America, also one of Appaloosa Management's holdings, shows up on a recent list of 5 Bank Stock Pullback Bargains.

2 of 6

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 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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