Financial and investment analysts collect and analyze financial information such as economic forecasts, trading volumes and the movement of capital, financial backgrounds of companies, historical performances and future trends of stocks, bonds and other investment instruments to provide financial and investment or financing advice for their company or their company’s clients. Prior to joining BIA/Kelsey, Butler served as a financial analyst with Frazier, Gross & Kadlec, a broadcast financial management consulting firm, also specializing in fair market valuations and tax appraisals for television, radio and cable television stations. She has prepared valuations and appraisals for many regional and national financial institutions and some of the largest corporations in the communications industry. He has authored articles for the BCFM Journal and other professional journals on intangible asset valuation.
Redpath has prepared hundreds of valuations of business enterprises, privately held equity interests, and purchase price allocations for financial and tax reporting purposes. He is also an Accredited Senior Appraiser (ASA) in Business Valuation with the American Society of Appraisers, a Chartered Financial Analyst (CFA), and he holds the Certificate in Investment Performance Measurement (CIPM) designation from the CFA Institute. This money and financial assurance was in addition to the $25 billion given to them in the Fall of 2008 through TARP.
To put this in perspective, $13 billion is more than Bank of America earned from 2011 to 2014 combined, as the company struggled with the fallout from the financial crisis. A factor that could positively affect BAC in 2014 and beyond is Bank of America’s plans to raise its dividend over time, if they can obtain regulatory approval. Bank of America’s management has also indicated that the bank is not interested in major acquisitions, which can have a negative impact on a stock price.
At the beginning of the foreclosure crisis in 2008, stock analysts could easily quantify the loss that Bank of America could reasonably assume from selling foreclosed properties. The biggest negative impact to Bank of America’s bottom line from its enormous foreclosed property holdings may be yet to come, and is not well understood by the investing community. While it was easy in 2008 for analysts to make assumptions about the losses that will ultimately be incurred when a foreclosed property is sold, that is no longer the case. Adequate due diligence should be performed and a registered financial consultant should be consulted before any investment decisions are made.
To understand where Bank of America’s stock is heading, it is important to understand how it got to its current level due to the 2008 Financial Crisis that rocked the United States financial markets. The purchase of Countrywide Financial meant Bank of America controlled 20% to 25% of the home mortgage market, making the bank the leading mortgage originator and servicer in the United States.