BAC: Hype

Bank of America is the largest bank in the U.S. yet it has severe fundamental problems. It's become obvious that Bank of American can not function over the past year, having received a fiscal lifeline from the Government. Diving even further into the balance sheet of BAC it becomes apparent very soon of how dire the situation is for BAC still. A couple simple financial calculations are Return on Assets and Return on equity. Utterly they show how effective management is at using your money and the companies revenue and efficiently turning the gears of thier company. Its obvious with an ROA of .20%(Bank average 1-1.5%) and an ROE of 2.70%(average 15-17%) you can see that the cash flows in are essentially being piled and lit on fire. On top of that BAC's Annual growth rate of Net Income for the past 3 years is -1.82. After looking at all this negative information I looked at the stock itself looking for the white outline and found the beta at 2.61! Theoretically BAC is 161% more volatile than the market. This was the nail in the coffin. Simply off of those basic calculations I beleive that BAC is not a smart investment. Its APPARENT TO ANY PERSON whose taken a finance class. The real perplexing question is why has BAC's stock been rising so rapidly the past month? The only explanation is HYPE. Naturally BAC's stock a year ago was around $32-$40 and everything is cyclical BUT it doesnt match. The market right now is easily influenced by investor mentality..too much so. Honestly I beleive that BAC will come back down very soon and stay stagnant for a while. The Bank is not sound and healthy and the leadership will lead it nose down. If your looking for a short gain..invest at your own risk but for fundamental investors..this is a red flag without a doubt.