At SeekingAlpha, contributor “StockCroc” is not enamored with Bank of America:
. . . BAC is trading at a deep discount of 71% to its book value per share. This indicates that many of its assets may in fact have inflated values or be worthless as management is unable to effectively utilize them to generate increasing earnings and net income. . . .
BAC has a large exposure to impaired loans with a loan loss provision in the third quarter 2011 of $3.4 billion. The bank is also the subject of ongoing regulatory investigation into its foreclosure practices and allegations that it hindered a prior investigation.
Creative analysis! There are of course many plausible reasons for arguing against owning BofA, but pointing out its low price-to-book ratio and large recent reserve additions aren’t two of the most obviously self-evident. . . .