Is Bank of America a $5 Stock or a $10 Stock?

The following video is part of our "Motley Fool Conversations" series, in which senior analyst Anand Chokkavelu, CFA, discusses topics across the investing world. Bank of America is amazingly volatile. Its market-leading share trading volume also attests to the popularity and wildness of its stock. In the last year, we've seen its share price come to rest above $10 a share and below $5 a share. Right now, it's in the middle, but what is the true value of a share of Bank of America? Is it closer to $5 or closer to $10? Anand believes the latter and explains in the video below.

For more on Bank of America, check out our premium Bank of America report. Included in the rundown are three reasons to buy Bank of America and three reasons to sell it. Click here for that report.

Or for a free report detailing a smaller and likely safer bank, check out: "The Stocks Only the Smartest Investors Are Buying." We invite you to download a free copy. To find out the name of the bank Buffett would probably be interested in if he could still invest in small banks, just click here.

At the time this article was published Anand Chokkavelu owns shares of Bank of America, Citigroup, Wells Fargo, and JPMorgan Chase. He also owns long-dated options on Bank of America and warrants on Citigroup, Wells Fargo, and JPMorgan Chase. The Motley Fool owns shares of JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup. The Fool owns shares of and has created a covered strangle position in Wells Fargo. Motley Fool newsletter services have recommended buying shares of The Goldman Sachs Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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gerry924

I'll bailout of BAC at 8 dollars. This stock isn't worth the headache.

August 04 2012 at 11:46 PM Report abuse rate up rate down Reply