Bank of America (BAC) shares oversold

Shares of Bank of America (BAC) are more oversold than tickets to the Obama Inauguration. Share price has floundered even lower during the last week, dropping below $10 a share to $5.97 in current trading.

The company, which earned $4 Billion in 2008, has aggreed to pay $475 to settle a class-action lawsuit filed by Ohio’s State Teachers Retirement System against Merril Lynch.

1 Year Chart:

Stockmasters - call me crazy, but I like what Kenneth Lewis has to say in the latest earnings call:

The core businesses at Bank of America continue to operate quite well. We continue to grow our franchise focusing on customers and associates. We have had healthy growth in checking accounts and deposits. Customers continue to seek us out as a company of strength. Metrics on customer favorability, brand awareness, customer satisfaction and purchase consideration all improved last year and we continue to be a leader in helping to find solutions to the credit crisis.

We are proud of this record. I think it is important for investors to understand that we do this because it is good business. The recession and credit crisis will end someday and people will remember that our company was there for them in hard times. That will be an essential element in our opportunity to return to the kind of profitability all of us want out of our company.

If you’re looking to invest for the long term, then you should know that there is a lot of value right now in Bank of America shares.

This little hiccup in BAC shares is a great buying opportunity. There is no way Obama is going to let the company go bankrupt. I think this year we will see a 100% return in BAC shares.