What Won't Business Insider Do for Clicks?
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Price: $56.02 +1.56%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2.1%
EPS Growth %: +23.6%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2.1%
EPS Growth %: +23.6%
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In a mid-morning release today, Business Insider (BI) immediately jumped on an analyst report from Bank of America (NYSE: BAC), using all the hyperbole of a 12-year-old sharing how they enjoyed their trip to the museum last Tuesday.
As noted this morning, BofA trimmed it's estimates on peers JPMorgan (NYSE: JPM), Citigroup (NYSE: C), Goldman Sachs (NYSE: GS), and Morgan Stanley (NYSE: MS). At no point in the report, which can be accessed here does BofA say its downgrading any of the banks. Downgrade is actually used three times in the report, all referring to sovereign debt moves by ratings agencies, which already happened.
Someone should tell BI this. Their article was titled "Bank of America Just Downgraded...etc."
The author cites ZeroHedge for the data, normally a credible source. ZeroHedge also believes the report was a downgrade, and was a slap in the face of JPMorgan, which upgraded BofA from Underperform to Neutral yesterday.
Of course, yesterday's ado with BI circled around a call by editor Henry Blodget, which estimated BofA needed to raise over $100 billion in capital to stay afloat. The report was littered with none of his own research, ballpark estimates, and hyperbole left and right. Blodget then said BofA shouldn't blame him for their plunging stock.
So, BofA's call today may be taken as a shot back at rivals for...whatever reason. Maybe making a tougher banking environment by stealing business? Not returning calls? Having cooler logos? But an informed investor may take the move as a benefit and timely advice. Many firms are quick to downgrade or cut estimates following major news, earnings, M&A, or whatever. By that time, shares have already moved, and potential profits may be in the opposite direction.
BofA clients, however, now have a 28 page report compiled of metrics, charts, and information about why BofA is lowering targets, enabling them with the ability to decide if they'd like to sell shares, hold their position, or buy more on weakness.
Further, all five of the financial institutions are trading at-or-near respective 52-week lows. Generally, there's not too much further to fall after that. The banks are all in positive territory Wednesday, with BofA leading the charge higher.
P.S. - BofA still rates Goldman and JPMorgan at Buy, with Citi and Morgan Stanley still at Hold.
P.P.S. - We're not saying BofA is or is not in trouble, or recommending the purchase of shares.
P.P.P.S. - BI usually has informative, useful articles. It just seems as of late the site has gotten a little extreme and beyond the scope of what it was initially intended to do: inform investors.
P.P.P.P.S. - Many other analysts and ratings firms make great calls ahead of events. Click here for a comprehensive database.
P.P.P.P.P.S. - The writer of this article is neither long nor short BofA shares, or any other stocks in the article.
As noted this morning, BofA trimmed it's estimates on peers JPMorgan (NYSE: JPM), Citigroup (NYSE: C), Goldman Sachs (NYSE: GS), and Morgan Stanley (NYSE: MS). At no point in the report, which can be accessed here does BofA say its downgrading any of the banks. Downgrade is actually used three times in the report, all referring to sovereign debt moves by ratings agencies, which already happened.
Someone should tell BI this. Their article was titled "Bank of America Just Downgraded...etc."
The author cites ZeroHedge for the data, normally a credible source. ZeroHedge also believes the report was a downgrade, and was a slap in the face of JPMorgan, which upgraded BofA from Underperform to Neutral yesterday.
Of course, yesterday's ado with BI circled around a call by editor Henry Blodget, which estimated BofA needed to raise over $100 billion in capital to stay afloat. The report was littered with none of his own research, ballpark estimates, and hyperbole left and right. Blodget then said BofA shouldn't blame him for their plunging stock.
So, BofA's call today may be taken as a shot back at rivals for...whatever reason. Maybe making a tougher banking environment by stealing business? Not returning calls? Having cooler logos? But an informed investor may take the move as a benefit and timely advice. Many firms are quick to downgrade or cut estimates following major news, earnings, M&A, or whatever. By that time, shares have already moved, and potential profits may be in the opposite direction.
BofA clients, however, now have a 28 page report compiled of metrics, charts, and information about why BofA is lowering targets, enabling them with the ability to decide if they'd like to sell shares, hold their position, or buy more on weakness.
Further, all five of the financial institutions are trading at-or-near respective 52-week lows. Generally, there's not too much further to fall after that. The banks are all in positive territory Wednesday, with BofA leading the charge higher.
P.S. - BofA still rates Goldman and JPMorgan at Buy, with Citi and Morgan Stanley still at Hold.
P.P.S. - We're not saying BofA is or is not in trouble, or recommending the purchase of shares.
P.P.P.S. - BI usually has informative, useful articles. It just seems as of late the site has gotten a little extreme and beyond the scope of what it was initially intended to do: inform investors.
P.P.P.P.S. - Many other analysts and ratings firms make great calls ahead of events. Click here for a comprehensive database.
P.P.P.P.P.S. - The writer of this article is neither long nor short BofA shares, or any other stocks in the article.
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