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How Bank of America Gets to $20 a Share

This video is part of our "Motley Fool Conversations" series, in which senior analyst Anand Chokkavelu, CFA, discusses topics around the investing world.

With all the fanfare about Bank of America's jump from $5 a share just a few months ago to around $10 now, Anand considers Bank of America's prospects to double again to $20 a share. He determines that it's not as far-fetched as you may think, barring any huge macro shocks. It will take a focus on the basics and some time, but Anand believes another double from here is quite possible.

Overall, Anand is bullish on Bank of America for those who can withstand the significant risk and deal with the its opaque balance sheet and operations. If that's not for you, check out a small bank that's flying under the radar. It has some of the best operational numbers you'll ever see. The Motley Fool featured it in its brand-new free report: "The Stocks Only the Smartest Investors Are Buying." We invite you to download a free copy. To find out the name of the bank Warren Buffett would probably be interested in if he could still invest in small banks, just click here.

Anand Chokkavelu and The Motley Fool own shares of Bank of America and Citigroup. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.

Read/Post Comments (4) | Recommend This Article (27)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 24, 2012, at 7:54 PM, alex1010 wrote:

    I agree with Anand 100% that $20 is just a matter of time.

  • Report this Comment On March 24, 2012, at 10:24 PM, steveat wrote:

    A lot of IFs

  • Report this Comment On March 25, 2012, at 10:28 AM, TMFBomb wrote:


    Yes, a double does require a lot of "if"s...B of A isn't the kind of blue chip (think Coca-Cola) whose business is set for the long run. There can (and will be) many twists and turns. Personally, I think it's still a buy at current prices, but only while acknowledging the risks.

    Fool on,


  • Report this Comment On April 01, 2012, at 2:38 AM, arywillis wrote:

    Absolutely above $20, after the bad mortgages work through the fundamentals will return.

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