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Bank Stock Recommendations================== Recommendation #1 ==================
This giant in the financial industry is currently trading around its 52-week low, but most analysts have given it a one-year target price of $54, up from its current level of $35. It's current dividend yield of 5.8% makes this investment attractive by itself. Add to that the strong possibility of capital appreciation and you could conservatively get a return of 20% or higher in 2008. Make no mistake about it. The subprime debacle is still ongoing, but there is more safety in larger institutions. These giants of the industry are less dependent upon the spread between short-term and long-term interest rates to produce revenue. Through a series of key acquisitions, this institution has become the largest issuer of credit, debit and prepaid cards in the world. It has over 5700 retail branches and over 17,000 ATM's across the USA. Although 90% of its revenue is generated in the USA, it also has an International presence. It has banking operations in China, India, Brazil and various other countries around the globe. Will interest rates go higher or lower? Most economists feel strongly that the Federal Reserve will continue to ratchet interest rates downward. This provides an environment that Banks can fluerish in. At the time of this writing, I have not purchased this stock for my own portfolio. However, I fully intend to do so. This is a conservative investment with the potential for total returns of over 20%. Opportunities like this are rare. Please do your own research. ========================== Company: Bank of America Symbol: BAC ========================== ================================================================= UpdateWhen I first recommended Bank of America Stock, its shares were trading at $35.They are now trading at $42.87 as of February 27, 2008. The current dividend yield is 6.00%. I love this stock for the long-term. It is a very good addition to investment strategies that utilize dollar cost averaging and dividend reinvestments. Such as DRIP Plans. The subprime debacle is not over, so a dip in future prices is possible. If your investment strategy is long-term, then this is one that will fit into your portfolio. If you are looking for short-term gains, I would suggest waiting for a dip in share price. This is only my opinion, please do your own research.
================= Recommendation 2 =================
Insiders at this Banking Institution have been buying up shares since July of 2007. A high-level Management Director has purchased over $8 Million in stock, or about 220,000 shares, with his own money. This can be a strong indicator that the stock is nearing a bottom. However, like all the financial institutions in the past 6 months, its share price has fallen. Investors all around the globe are trying to determine when the bottom shall present itself. Many foreign Governments have already purchased millions of shares in companies like Citigroup. This particular Banking Giant, has lost about 48% of its share value in the last 52-week period. It recently announced further write offs will be coming in the next quarter. Is now the time to purchase this stock? Unless you are planning to dollar-cost-average, it is wise to wait to see if any of these companies are going to reduce their dividends. If they do, this shall cause a further decline in share price. However, the reduction should provide investors a good price level to enter the market. The Institution I am recommending is located in 21 different US states. It has over 3,400 Retail Financial Centers, as well as 40 International Offices. The current divident yield is 9.80%. It is probable that the dividend will be lowered next quarter, which will likely cause the share price to fall also. This should provide an excellent point to purchase this stock. The estimated 5-year growth rate is set at 6.92%. Analysts estimate a target share price by the end of 2008, about 40% higher than where it currently sits ($31/share). The time is fast approaching where investors should start purchasing these out-of-favor stocks. The company I am recommending, could potentially return between 30% to 40% in the upcoming year. A generous return when you consider it is a Blue Chip Company that is not be exposed to as much risk as a smaller entity. Please do your own research. ======================= Company: Wachovia Current Price As of 3/10/08 : $26.05 Symbol: WB ======================= Disclaimer: I am not a registered investment advisor. Everything on this website is my opinion and put her for the enjoyment of my readers. I do not recommend making financial decisions based upon my opinions. I advocate doing your own research and making an informed decision. All information put forth on this website was obtained freely via the internet, radio and television. I do not have any contracts or deals with any financial newsletter of any kind. Income generated from this site is done through advertisements. I will always let my reader know if I hold any position on a recommendation I make. =================================================================
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