By Richard Schmidt, Stellar Stock Alert

It’s time to look for buy opportunities. The market's road to new all-time highs could still have significant bumps along the way. But the trend up is definitely in place.

And we now have a surprising new buy recommendation: Bank of America (BAC), a stock I honestly thought I would never buy. For years, it looked like it was too big to produce any appreciable growth in its share price or market share. And the company has really taken big hits in its public reputation. But things have really changed.

We’ve been pleasantly surprised with the actions taking place within the company in recent months. Our sources inside the bank tell us the whole atmosphere has changed.

For years, everyone questioned whether the company had the capital to even survive. A Warren Buffett infusion of $5 billion in cash put the bank on a solid cash footing. Now the focus among the insiders isn’t building capital – it’s on revenue growth.

We can tell you from firsthand contact with the sales staff that they are really excited about the new environment. They feel like the company is finally providing them with the tools needed to really succeed.

So, fundamentally, we see everything lining up for BAC. Not only has it survived the sub-prime mortgage fiasco, it’s purchased several companies that are finally fully merged into the company and ready to contribute to its bottom line.

We also can’t discount Warren Buffett’s role in Bank of America. His annual letter to shareholders of Berkshire Hathaway really praised the executives at BAC. He likes what he sees.

With everything lining up well on the fundamental side, we also have to look at the technical side. And the charts confirm what we’re seeing in the fundamentals.

Technically, the stock shows a solid head and shoulder bottom in place, with the right shoulder higher than the left (very bullish).

We also see the stock moving above both moving averages. And now the 50-day moving average is moving up and should cross the 200-day average in a matter of days or weeks.

We normally like to wait for that action to take place. But with everything lining up, we think it’s time to buy.

Frankly, there’s little downside risk. The stock is currently selling for about $8. The downside support level is at $4.92. We don’t see BAC dropping that far. And the upside potential is huge – and it could come quickly.

This is a big company with a cheap share price. A lot of Wall Street and government insiders have a vested interest in seeing BAC win. So we think you could easily double your money in 12 months or less. Our target price is $16.

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