Stocks on Wall Street: Bank of America Posts 1st loss in 17 Years, Results in $20 billion infusion

Friday, January 16, 2009

Bank of America Posts 1st loss in 17 Years, Results in $20 billion infusion

Bank of America (BAC) send a scare around Wall Street posting its first quarterly loss in 17 years and slashed its dividend from 32 cents to a Penny. This also came hours after winning a multibillion-dollar lifeline from the U.S. Government to help absorb Merril Lynch which lost a record $15.31 billion in the quarter. This caused pressure and fear among investors resulting in Bank of America's shares to drop. Bank of America's purchases of Merril Lynch and Country Wide exposed them however should allow for the economy to transition quicker. Personally i would stay away from investing in Bank of America right now due to the amount of baggage that they are carrying with them currently. Watch it over time to see how they respond next quarter. However if you are interested in investing with the Banking Industry look at Goldman Sachs (GS) and Wells Fargo (WF) the two solid bets to make you money in the new year.

Bullish

AAPL - Poised to make a big move we will see what it is
APC - Increased demand will increase profits for this Natural Gas powerhouse
BIDU - I love China and love the Internet Business, BIDU offers best of both Worlds
CHL - With the bounce back in China's economy expect similar results with the largest Phone Provider CHL
COP -Read XOM or CVX
COST - A recession proof stock will benefit from consumers looking to save
CSCO - Tech is rallying and so is this stock
CVX - Investors are moving out of oil futures and back into the companies that sell it
DEO - Alcohol stays relatively Recession proof and this conglomerate owns every name brand
DIS - Might struggle in the Short-Term but this is a stock to buy for your kids and put it away
EMC - The tech stock you need to own
EWZ - ETF that allows you to benefit from the whole Brazilian Economy
FCX - Commodities are heating up and so is this stock
FXI - China's liftoff is coming soon and this is the top ETF which encompasses it all
GOOG - The announcement of Google Voice along with continued strong revenue will send the stock to all-time levels
GS - M&A's will be a major part of 2009 bringing business and $$$ to Goldman
IVN - So many suitors they are sitting pretty right now
MCD - The company should be fine as it offers a great dividend and is run by great management
MOS - Getting a lot of attention in the calls market which is making AG Stocks appealling
MS - With a low amount of debt on the books they look pretty solid
NAT - In an Industry that is looking for a rebound plus offers a very nice dividend
ORCL - Best of breed companies will do well in current markets
PBR - With Investment plans of up to $175 billion in the following four years, PBR is about to do big things
PGJ - China will soon be booming and this ETF allows you to benefit from the whole market
PTR - China's helped stabilize the Commodity Market and they will want to help out companies within
RIG - I like Shippers, so I like RIG
RIO - The World's Largest Ore Producer will see increased production and higher commodity prices which will make this stock soar
SOHU - Buy anything Chinese right now as it should produce quality numbers
T - A solid company with good financials, i like it at $20. Long-term be careful with the competition developing with Google.
TBSI - Shaky, volatile stock. Yet long-term I think Shippers will survive
TM - The only car company with a chance to make it out alive due to its foreign influence
VLO - Oil is destined for a comeback and the refiners are waiting to seek the profits
WMT - Just boosted it dividend and offered a strong third quarter, $46 might have been the low
XOM - I like the options this company has with $31 billion in cash

Bearish

AA - Ugly looking balance sheet with no Private Equity. This stock could fall to $2
AIG - This company will be struck hard by the government if they don't pull back on employee bonuses
AMTD - Their bad earnings were directly correlated to the recession
BA - With big cuts in AeroSpace and Defense this stock could see a 20% decline on the bad news, that 5.6% dividend is questionable as well
BAC - Too much debt, too little revenue
C - Profit in 2009 was good news but still very speculative and far to government owned
CAT - Not enough work to cover the high costs plus now relying on government for help, expect it to drop to $15 when they slash the dividend
DELL - No one is looking for a new Dell just look at their earnings
ETFC - Tough time as no one, i mean no one is looking to invest
F - Chrysler's CEO said we are still a long ways away and he was speaking for the Industry
GE - No news on their capital situation is a warning flag to stay away
GM - They are contemplating Bankruptcy which is never a good sign
HPQ - Retailers all over are being hit hard
INTC - Terrible Earnings prospects make this stock not worth owning
JPM - Expect this stock to fall down to the $4-$5 levels however it is better off than most banks due to its lack of necessity for Government Shareholders
MSFT - Way overpriced for current markets with low dividend
PG - Overpriced in current markets and hurt by a strong dollar
SBUX - $5 coffee? No thanks
WFC - They took on lots of debt with the Wachovia Acquisition and only time will tell if it pays off

Stocks on Wall Street

Friday, January 16, 2009

Bank of America Posts 1st loss in 17 Years, Results in $20 billion infusion

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