Bank of America (BAC) NewsBite - BAC Lower on Downgrade

Posted on Wednesday, September 10, 2008 12:38 PM

Bank of America (BAC) was downgraded today by analysts at Keefe, Bruyette & Woods and the stock is now at $31.95, down $0.57 (-1.75%) on volume of 45,873,428 shares traded. The brokerage firm downgraded the stock to "Underperform" from "Market Perform." Over the last 52 weeks the stock has ranged from a low of $18.44 in July to a high of $52.96 in October. Bank of America stock has been showing support around $30.51 and resistance in the $36.11 range. Technical indicators for the stock are bearish and S&P gives BAC a negative 2 STARS (out of 5) sell ranking. The broker said bank operating environment remained challenging, amid slowing economic growth, credit contraction and capital constraints. If you are looking for a hedged play on BAC the stock seems like it could be a candidate for a September out-of-the-money bear-call credit spread above the 35 range. [ABR-Seven Summits Strategic Investments NewsBite]