BAC: Bank of America Uncertainty

Unless the government takes over more of the assets that Bank of America took from the Merill and country wide deals there will be limited to no confidence in the stock. In the very short term we will see BAC drop and stay in the $4 and $5 range with an increase in volatility based on the sector. In the 6mo term we will probably see $6-$8. Key competitors to watch are Citi (c) which has too many trouble assets and is already breaking itself apart and Wells Fargo (WFC) that only has the troubled Wachovia assets and will continue to have a positive EPS and more or less lead the sector in stability.