Bank of America
A global banking giant that insiders are loading up on here is Banks of America (BAC), which provides various banking and financial products and services to individual consumers, small-and middle-market businesses, institutional investors, corporations, and governments in the U.S. and internationally. Insiders are buying this stock into some major strength, with shares up 45% so far in 2012.
Bank of America has a market cap of $87.4 billion and an enterprise value of $145.98 billion. This stock trades at a cheap valuation, with a forward price-to-earnings of 8.03. Its estimated growth rate for this next quarter is -71.4%, and for next year it's pegged at 71.2%. This is far from a cash-rich company, since the total cash position on its balance sheet is $643.88 billion and its total debt is $701.83 billion. After you back out the cash, Bank of America has a total of $57.95 billion in total debt on its books.A director just bought 482,794 shares, or around $3.55 million worth of stock, at $7.36 per share. >>5 Big Financial Stocks to Buy in June From a technical perspective, BAC is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock just started to trigger a near-term breakout since shares have moved above some overhead resistance at $7.90, and above its 50-day moving average of $7.78 a share. This move is pushing BAC within range of triggering another near-term breakout trade. If you're bullish on BAC, then I would look for long-biased trades once this stock breaks out above some near-term overhead resistance at $8.39 a share with high volume. Look for volume on that move that registers near or above its three-month average volume of 223 million shares. If we get that action soon, then look for BAC to re-test and possibly take out its next significant overhead resistance levels at $9.17 to $10.09 a share. Keep in mind, that traders can also buy BAC and anticipate the breakout as long as it's trending above its 50-day with strong volume. I would simply avoid BAC or look for short-biased trades if it fails to trigger that breakout, and then drops back below its 50-day moving average of $7.78 a share with high volume. A high-volume move below that level would setup BAC to re-test and possibly take out its 200-day moving average of $7.17 a share. Bank of America, which shows up on a list of 5 Bank Stocks Wilting Under the Summer Sun, was also featured recently in "5 Breakout Stocks to Buy on This Bounce."
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
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
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV