Why Bank of America Stock Is Scary Today

Updated

Despite shares of Bank of America more than doubling in value in 2012, the stock still trades below its tangible book value per share -- a sign the bank may be undervalued. Although shares may have significant upside in the long term, many investors are not comfortable putting their money behind the Charlotte, NC megabank.

Because of its polarizing nature, the bank's stock is consistently one of the most actively traded stocks on the market. As more and more investors love the stock, more and more investors hate the stock -- and emotion enters the equation.

In this video, Motley Fool banking analysts David Hanson and Matt Koppenheffer, a B of A shareholder, discuss the best approach to take if one is interested in acquiring Bank of America shares.


Could B of A be right for you? With significant challenges still ahead, it's critical to have a solid understanding of this megabank before adding it to your portfolio. In The Motley Fool's premium research report on B of A, analysts Anand Chokkavelu, CFA, and Matt Koppenheffer, Financials bureau chief, lift the veil on the bank's operations, including detailing three reasons to buy and three reasons to sell. Click here now to claim your copy.

The article Why Bank of America Stock Is Scary Today originally appeared on Fool.com.

David Hanson has no position in any stocks mentioned. Matt Koppenheffer owns shares of Bank of America. The Motley Fool owns shares of Bank of America. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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