Today, analyst Anand Chokkavelu reports that Bank of America was able to turn in a profitable quarter, though just barely, at an EPS of $0.00. But here are three things to fear from the release:
1. The company notes an 18% increase in its mortgage business. That equates to extra loans of $3 billion to 4 billion. Compare that with the $15.9 billion in loans it lost versus last year by shuttering its correspondent lending business, and it doesn't seem that impressive
2. Total loans were down versus last year. Although many of these moves are good (correspondent lending), B of A, along with Citigroup, is distracted while Wells Fargo and JPMorgan Chase are crushing it on mortgages.
3. Another $1.6 billion of litigation expenses is a big cloud over B of A that continues to keep shares cheap.
Overall, Anand remains bullish on Bank of America, even despite these concerns.
Apple's next smart device (warning, it may shock you
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!