buy penny stocks, penny stocks, penny stock alerts, hot penny stocks, hottest penny stocks, best penny stocks

Buyer Beware: BAC Approaching Penny Stock Status

Is BofA soon to become a penny stock?

As the FDIC announces bank earnings hitting the highest level in 4 years, Bank of America (NYSE: BAC) is warned by regulators.

GET STRONGER!

The FDIC reports bank earnings rose to $35.4B in Q3, while the number of problem banks fell to 865. The number of troubled banks fell for the 2nd straight quarter while bank earnings rose over the summer to their highest level in more than 4 years. Simultaneously, U.S. regulators have informed Bank of America’s (NYSE:BAC) board that the company could face public enforcement action if they are not satisfied with recent steps taken to strengthen the bank.

Banks, with assets exceeding $10 billion, made up 1.4 percent of all banks but accounted for about $29.8 billion of the $35.3 billion industry’s earnings in the Q3. Of those banks that account for the majority of the earnings: Bank of America Corp. (BAC), Citigroup Inc. (C), JPMorgan Chase & Co.(JPM) and Wells Fargo & Co.(WFC). Most of these banks have recovered with help from federal bailout money and record-low borrowing rates.

BAC, however, has been operating under a memorandum of understanding since May 2009. The memorandum is not public. It identified governance, risk and liquidity management as problems that had to be fixed.

Why weren’t shareholders informed of this while BAC approaches penny stock status? Why wasn’t the public informed for 2 years that BAC could become insolvent or any other issues that could crush consumer confidence even further with today’s headline of $1.2 trillion in mandatory spending cuts.

This why trading penny stocks is much more enjoyable and profitable for me than these slow moving big board stocks like BAC, AAPL, MSFT and WMT.

You say security and risk. I say time value of money and reward.

Target Your Profits Higher!

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS WEBSITE OR BLOG POST.

Visit AimHighProfits.com to learn more about these companies and Penny Stocks To Watch

Advertisements

Got Something to Say or Add......

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s