The results of the recent stress test said that Bank of America (BAC) needs to raise $34 billion. The bank just completed a massive secondary offering. Bank of America issued 1.25 billion shares at an average price of $10.77. To raise even more money, the bank plans to sell off some divisions and subsidiaries.
Two weeks ago, I rated BAC a Hold. For the moment, I’ve raised Bank of America to a Buy. The credit markets are clearly thawing and that should help.