Bank of America delivers on the bottom line
Shares were up Wednesday after earnings, but is this just a case of jumping over a very low hurdle?
In this video, host Mark Reeth talks with Motley Fool One analyst Jason Moser about what's behind the curtain at Bank of America today. He notes that the company was able to increase both its net interest margin and its deposit base, but for the long-term investor, he sees some big headwinds here.
While Jason commends Bank of America for starting now to embrace some of the major macro shifts that are going to be coming to the banking industry over the next decade, such as the shift to entirely online banking and the resulting branch closures and job scalebacks to cut costs, he sees that shift more broadly as part of the commoditization of banking.
This could put a large amount of downward pressure on Bank of America's fee pricing structure, and force the company to be much more reliant on other areas of its business.
Finally looking forward, Jason sees no reason to be a buyer of this stock today. He notes that a company of this size with a pretty anemic yield holds little interest for him, and says that the management team at BAC isn't nearly inspiring enough to change that opinion. His final verdict: there are plenty of other opportunities elsewhere.
The Motley Fool's 12 top stocks for 2013 are now available! So if you're tired of picking stocks out of a hat and hoping that one skyrockets, check out Stocks 2013: The Investor's Guide to the Year Ahead. It's The Motley Fool's current top report, and includes Chief Investment Officer Andy Cross's top stock for 2013! This under-the-radar company is the secret winner in the war for the last precious drops of oil on the planet. Find out what it is and how you can take advantage of this unseen company's huge profits in this special, free report, just click here now.
Shares are up delivers on the bottom line like any good criminal organization must ! Keep the sheep happy the real money always floats to the top ! DIE BANK OF AMERICA DIE !
They are simply adorable and loving little things aren't they?
What Bank of America and K-Mart have in common... with all products and services ubiquitous now, it's a matter of price, location, location condition and the experience. Essentially, both are also-rans in the pricing arena... always a few pennies or percentage higher, close but with that smell of age or the armed security at the door is too obvious and the transaction is cold.
We should all have zero-tolerance for what has happened to us... humans mass terminated but bad businesses funded back into existence with fiat money, but the stitches and artificial replacement parts are showing. You died, Bank of America. Go into the ground and let Free Enterprise create the 21st Century alternative for what gave you life a very long time ago.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Like many companies this winter, the fast-food giant blamed a drop in same-store sales on the weather. But could its problems be bigger than a snowbank?
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.