A short-term Fiscal Cliff trade.
With his firm's Washington Research Bureau saying that there is "a 65% probability that the U.S. economy is pushed over several of the initial Fiscal Cliffs," because of all the moving parts being discussed by President Obama and leaders in Congress, Guggenheim Securities analyst Marty Mosby on Monday made a " tactical trading sell" call on Bank of America, saying that the company's shares "could trade below $8 over the next three months if it becomes apparent that the U.S. economy is about to be pushed over several of the upcoming Fiscal Cliffs." For long-term investors, Mosby has a 12-month rating of "Buy" for Bank of America, with a "$12 price target. Bank of America's shares pulled back by a nickel to close at $9.85 Friday. The shares have now returned 78% year-to-date, following a 58% drop in 2011. The shares trade for 0.7 times their reported Sept. 30 tangible book value of $13.48, and for 10 times the consensus 2013 EPS estimate of 97 cents a share, among analysts polled by Thomson Reuters. The consensus 2014 EPS estimate is $1.27.