This Banking Stock Still Has Gobs of Upside Left Amid Solid FY12 Performance - Cramer

January 8, 2013 10:13 AM EST
Remember, "the trend is your friend."

Keeping that in mind, we can now turn our attention to Jim Cramer this morning. The erudite equities expert is honing in on another solid pick for your 2013 portfolio.

After moving over 100 percent in 2012, many might write-off a name like Bank of America (NYSE: BAC). Cramer contends that the best might just be starting of BofA.

He makes a couple of key points:
  • First, the economy is firming up with housing on the mend and even jobs and business investment look better.

  • Next, worries over Europe are ebbing, the fiscal cliff has come and gone, taking away that uncertainty, and the last three parts of Dodd-Frank will be cleared up this year.

  • BofA's settlement with Fannie Mae and Freddie Mac is a plus. Most banks are coming to an agreement with the GSEs.

For BofA specifically, Cramer noted that the bank has been going through a restructuring, cleaning up its balance sheet and erasing larger costs.

Though BofA was up 108 percent last year, it still trades 30 percent below its tangible book value. Cramer thinks BofA has "a lot of room to run."

Shares are down 1 percent Tuesday after recently reaching an annual high of $12.20 per share on Monday.

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