Dick Bove Defends Bank of America (BAC); Doesn't See Anything New From WikiLeaks, Shares Significantly Undervalued
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Price: $61.69 -0.27%
Rating Summary:
26 Buy, 18 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
26 Buy, 18 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Rochdale Securities' Dick Bove is defending Bank of America (NYSE: BAC) related to today's weakness on speculation it is the target of WikiLeaks.
Bove said while the data upcoming from WikiLeaks will be "sensational" it will unlikely be "relevant."
Bove said it is believed that the data may either relate to the Merrill Lynch acquisition or Countrywide's lending policies.
"It may be that the executive indicated that Bank of America was fully aware of all the write-offs and bonuses at Merrill...," Bove said. "Or, the data may deal with Countrywide's underwriting policies and some type of collusion between the bank and Countrywide related to the issuance of securities. Possibly the "friends of Angelo" may be revealed including Senator Dodd's relationship with the company."
Bove said it is hard to conceive that the information will be new or that it has not been dealt with by the system already.
Bove said the Bank of America would be worth $15 per share if it went bankrupt, and he doesn't see that happening.
He reiterated his Buy rating and $19.25 price target.
Share of Bank of America fell more than 3 percent to a new 52-week low on the WikiLeak speculation.
Bove said while the data upcoming from WikiLeaks will be "sensational" it will unlikely be "relevant."
Bove said it is believed that the data may either relate to the Merrill Lynch acquisition or Countrywide's lending policies.
"It may be that the executive indicated that Bank of America was fully aware of all the write-offs and bonuses at Merrill...," Bove said. "Or, the data may deal with Countrywide's underwriting policies and some type of collusion between the bank and Countrywide related to the issuance of securities. Possibly the "friends of Angelo" may be revealed including Senator Dodd's relationship with the company."
Bove said it is hard to conceive that the information will be new or that it has not been dealt with by the system already.
Bove said the Bank of America would be worth $15 per share if it went bankrupt, and he doesn't see that happening.
He reiterated his Buy rating and $19.25 price target.
Share of Bank of America fell more than 3 percent to a new 52-week low on the WikiLeak speculation.
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