Cramer Banks On Bank of America (BAC)
Today, TheStreet.com's (Nasdaq: TSCM) Jim Cramer purchased 2,500 shares of Bank of America (NYSE: BAC) at the open around $12 for his ActionAlertsPlus.com portfolio.
Below Cramer outlines several of the reasons why he decided to take the plunge into Bank of America.
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Bank of America is up 1.69% in today's trading.
Below Cramer outlines several of the reasons why he decided to take the plunge into Bank of America.
- BAC raised most of its capital that is required by the U.S. government under the stress test through "at the market" sales, preferred share exchanges and its $7.3 billion sale of China Construction Bank. This ensures Bank of America will eventually be able to repay TARP, like its competitors.
- As everyone knows, Cramer thinks housing has bottomed, therefore Jim thinks Bank of America is a great way to play the housing recovery with its ownership in Countrywide and other mortgage operations.
- The steep yield curve is a big plus as banks benefit from borrowing short and lending long, called positive spread investing, and will also contribute nicely to earnings.
- He noted the Merrill Lynch integration is going very well, and it has had market share gains in capital markets, investment banking and trading.
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Bank of America is up 1.69% in today's trading.
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