Shares increased 3.4% in the last month and more than 4% Monday. The banks have headwinds with regulators and political opportunists. At the same time, the Fed has the real estate market's back and cheap money is here to stay until the overall economy improves. While Citi is making new yearly highs, keep in mind that from a longer term historic point of view, Citi is cheap.
Citi is cheap based on earnings and estimated forward looking earnings. Citi is cheap from a vantage point of assets in the book. You will likely get a chance to enter near or under $39 so don't feel a need to chase this one higher.
The last reported short interest is paltry and without reason to consider it a meaningful influence at only 2% of the average trading float.
Bank of America (BAC) Bank of America is one of the world's leading financial services companies. Bank of America provides individuals, small businesses and commercial, corporate and institutional clients across the U.S. and around the world. Bank Of America trades an average of 150 million shares per day with a market cap of $119 billion. 52 Week High: $10.71 Beta: 1.77 Price to Book: 0.52 In the last month, the stock has really moved higher with a 11.6% increase. The run Bank of America performed in the last few months is nothing short of incredible. Well, maybe not incredible after discounting the Fed's actions, but impressive none the less. I traded BAC in the after-hour session on Monday. BAC is somewhat extended, and like several others in this article, I would sit on my hands before entering into a position for a long term hold. With that said, you want exposure in the banking space. You have the Fed watching your back, and at the point the Fed no longer is holding the floor in place, the overall economy should provide plenty of forward motion. BAC Revenue Per Share TTM data by YCharts
At the time of publication, the author had recently traded BAC but currently held no position in any of the stocks mentioned. Follow @RobertWeinstein This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $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
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV