Bank of America (BAC) Q1 EPS Preview

Bank of America (NYSE: BAC) shares have languished since the Federal Reserve’s dovish monetary policy statement release, which was a letdown to banks hoping for near-term margin expansion. BAC didn’t perform all too well before that either, weighed down by the Fed’s stress test results, which produced a qualified approval for Bank of America’s capital plans. But I suspect something else has been burdening the shares more recently and could make BAC shares irresistible soon. Bank of America disappointed investors when it last reported earnings in January. As a result, there is likely fear afoot today about the upcoming Q1 results, which should be reported on or around April 15. But the risk seems to me to have been built into the shares at this point, considering the positives that lay ahead for BAC. There is also the potential for an upside surprise when the company reports its earnings, which has not been considered by BAC bidders yet. The stock is approaching irresistible value in my view and should be accumulated into and after the report, even if it declines further. See our BAC EPS report preview here.

BAC Peers	03-16-15 to 03-27-15
Bank of America (BAC)	-5.1%
SPDR S&P 500 (NYSE: SPY)	-0.9%
Financial Select Sector SPDR (NYSE: XLF)	-2.8%
Citigroup (NYSE: C)	-5.0%
J.P. Morgan Chase (NYSE: JPM)	-3.7%
Goldman Sachs (NYSE: GS)	-2.0%
Morgan Stanley (NYSE: MS)	-2.5%
Wells Fargo (NYSE: WFC)	-2.9%
U.S. Bancorp (NYSE: USB)	-4.2%

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Bank of America (BAC) - 50% Upside to $24 Target

Bank of America (NYSE: BAC) shares have been ironically placed into a position to achieve superior appreciation over the next year. Fear of higher interest rates had stocks moving sharply lower recently, including BAC. But, ironically, Bank of America will benefit significantly from a higher interest rate environment. Then on Thursday, the bank was separated from its peers by the Fed’s second round of stress testing, keeping it from participating in the rally its peers enjoyed. However, ironically, the bank will still be allowed to return $4 billion in value to shareholders via its planned share repurchase program over the next 12 months. For this reason, BAC looks ironically misplaced to me, and given its valuation discount to peers, I expect superior appreciation for BAC over the next year amounting to at least 50% appreciation toward my target price of roughly $24 a share. See my full report on Bank of America (BAC) here.

Bank Stocks	03-12-15
SPDR S&P 500 (NYSE: SPY)	+1.3%
Bank of America (NYSE: BAC)	-0.1%
Citigroup (NYSE: C)	+3.3%
J.P. Morgan Chase (NYSE: JPM)	+1.9%
Wells Fargo (NYSE: WFC)	+3.5%
Goldman Sachs (NYSE: GS)	+3.1%
Morgan Stanley (NYSE: MS)	+6.1%

DISCLOSURE: Kaminis is long BAC. Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Apple’s (AAPL) Dow Inclusion - Catalyst, Curse or Inconsequential?

Apple’s (Nasdaq: AAPL) inclusion in the Dow Jones Industrial Average may seem inconsequential to a good many investors. However, today, some are calling it a curse based on the performance of other technology names (Microsoft – Nasdaq: MSFT for one) since their addition to the Dow (NYSE: DIA). As a former employee of an index manager, I know there actually is a tangible and favorable benefit to Apple shares’ because of their inclusion in the major index. See my report on Apple (AAPL) here.

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

McDonald’s (MCD) - Why the Run is Done at $100

McDonald’s (NYSE: MCD) run to $100 has been impressive, but it could end abruptly over the next few days. My reasoning has little to do with the round number, and a lot to do with an imminent event that I believe could remind investors of the reason why the stock was a dog of the Dow to begin with. While MCD has had a nice run since hiring its new CEO, it’s now show me time and the precedent isn’t good. See my full short report on McDonald's here.

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Why Facebook's Stock is Breaking Out

After trading range-bound for half a year, Facebook (Nasdaq: FB) shares have found new footing. I see a few good reasons for the start of this latest move. The company is importantly benefiting from fresh news about its operational progress and its valuation, which is serving as a reminder of the special opportunity the shares offer investors. The stock is also positioned to exaggerate the performance of a market now free of previous reasons for concern. And within-sector capital flows from value to growth names could be occurring now as well, which serves Facebook. As a result, Facebook shareholders should let go of any frustrations with the stock’s previous stall and take their fingers off the sell-trigger, because the stock should now begin to fulfill its promise again. I see this breakout driving to $85 without much difficulty, and to $90 as analysts raise their 12-month price targets thereafter. For the year, I see at least 32% upside appreciation potential for Facebook holders, and it appears the stock has started its move toward that goal. See my full report on Facebook (FB) here.

DISCLOSURE: Kaminis is long FB. Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Bank of America – Fed Favor in 2015

Federal Reserve Chairwoman Janet Yellen’s testimony this week served as a reminder to Bank of America (NYSE: BAC) investors that Fed favor will fuel BAC over the next few years. The bank’s shares have traded with high sensitivity to the rate outlook, and the Fed continues to work toward increasing rates. BAC shares climbed approximately 1.4% just after Tuesday’s release of Chairwoman Yellen’s prepared statements. BAC closed up 1.1% on the day. It’s my view that as we approach the first Fed rate hike, BAC shares will creep toward $18, where they made their home before last quarter’s earnings report. See my full report on Bank of America here.

DISCLOSURE: Kaminis is long BAC. Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Bank of America – Why A Greek Fix Fast-Tracks BAC to $18

Obviously, Greece does not have a significant direct tie to Bank of America (NYSE: BAC), but in my view the future of the euro does matter a great deal to BofA’s operational performance. It’s not an easy read, but for the discerning analyst you can see how a solidified euro-zone can help the dollar lower against the euro and help U.S. interest rates move higher. That is what matters to Bank of America’s profit margin and so a favorable resolution to the Greek issue can drive its stock upward to $18 quickly in my opinion. See the report on Bank of America. Report also interests Citigroup (NYSE: C), J.P. Morgan Chase (NYSE: JPM), Wells Fargo (NYSE: WFC), Morgan Stanley (NYSE: MS).

DISCLOSURE: Kaminis is long BAC. Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Facebook (NYSE: FB) Should Do This To Unlock Value for Shareholders

I was overjoyed by Facebook’s (NYSE: FB) operational performance this past quarter as were most on the Street. Still, as I watched the stock collapse during its COO’s pre-conference call interview with CNBC (video no longer available at the site), I understood how the industry leader could do better for shareholders. Sheryl Sandberg had a fine interview, but I believe the company inadequately prepared the investment environment ground ahead of the EPS report. That I believe caused it to be poorly received and even today the stock’s compelling story fails to pull in bidders. Facebook has to properly prepare the seeds of price appreciation through clearer and more strategic communications geared toward the investors’ perspective. See my free report on Facebook here.

DISCLOSURE: Kaminis is long FB. Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

GoPro (GPRO) – The Good, The Bad & The Ugly

When GoPro (Nasdaq: GPRO) reported its fourth quarter earnings last week, there were three key points; one was really good for the company, one was unfortunately bad for shareholders, and the final point was just ugly and unexpected. After rising sharply in early after-hours trading on the good news first discovered by antsy traders, the stock then collapsed on the bad and the ugly. But one of the three factors will matter a great deal more than the others moving forward, and drive the stock price direction higher long-term. See the free report on GoPro here. This article should also interest Ambarella (Nasdaq: AMBA).

DISCLOSURE: Kaminis is long GPRO. Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Halliburton (HAL) - When the Second Shoe Drops

Halliburton (NYSE: HAL) said Tuesday it would cut its workforce in an unrelated action separate from its acquisition of Baker Hughes (NYSE: BHI). It is the natural result of the sudden sharp drop in oil prices. HAL shares fell 2.1% on the news, and BHI dropped 1.3%. But the iPath S&P GSCI Crude Oil ETN (NYSE: OIL) fell by 5% on the day, so investors in HAL may be missing something. The shares of HAL have bounced off the bottom with oil prices and other oil services firms, but they may be missing the fact that a second shoe will drop, the impact of these events on earnings this year. That’s why I think investors should prepare to hedge back their investments in the leading edge of the energy complex and look to the commodity itself, and take some risk off stocks like Halliburton ahead of potential earnings pre-announcements in Q1. See my report on Halliburton here.

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Baidu (BIDU) – Beaten Back by China but Buy it Here

Baidu (Nasdaq: BIDU) has been beaten down over the last few months by bad news about economic activity in China and by some relatively disappointing earnings news from an important stock of the region as well. That situates the stock well heading into its own earnings report, but upside may be limited in this environment. Downside risk should be limited here as well, so I see the stock as okay to buy for the long-term here but I would not stake a short-term trade purely on the EPS report. See my full prescient report on Baidu here.

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Buffalo Wild Wings (BWLD) Should Benefit from NCAA Football Playoffs

When Buffalo Wild Wings (Nasdaq: BWLD) reports earnings this evening, I expect it will talk about its current quarter benefit from the new NCAA Division 1 Football Playoffs and Championship Game. The event is new, and so what once drew viewers for 1 game, just drew more viewers for 3 games. That means this quarter (Q1) will have an easy comp against the prior year quarter when it’s reported in a few months. I anticipate that the college football championship game drew more viewers this year than in any other year, and that the addition of the extra games and the hype about the finale drove foot traffic into Buffalo Wild Wings and will support its Q1 due for report in 3 months. BWLD was cheap before its last quarterly report, but has risen significantly into this report. I like the stock long-term, but am wary of playing around with it ahead of earnings this quarter due to its position heading into it. That said, I wouldn’t sell it if I owned it, and would buy more if it drifted. I expect it to close toward $190 tomorrow, up $10, taking it back toward its high. The PEG ratio for the stock is 1.5X based on a P/E of 30X this year’s consensus EPS estimate and the 20% long-term growth expected. Growth should exceed 20% this year and estimates should see revision higher. BWLD is a buy in my opinion, but I wouldn’t buy options ahead of the report, only stock, and I would buy this stock on weakness thereafter.

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

National Bank of Greece (NBG) – Why I Went Long Recently

When all appeared lost and everyone thought a Greece exit from the euro-zone was imminent, I went long the National Bank of Greece (NYSE: NBG) when the stock was trading at around a dollar; I took my long position via long-term call options. It was a classic buy into fear moment and the blood was in the streets, but I still see opportunity for further upside in NBG and am still long today despite a better than 100% gain in my calls so far. I believe long-term investors are wise to look at NBG shares even now while they trade at approximately $1.50, along with all Greek equities. Investors can also use the Global X FTSE Greece (NYSE: GREK) to spread risk better, as it has a ways plenty of room to grow as well. See the report on NBG here.

DISCLOSURE: Kaminis is long NBG. Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

GoPro's Super Bowl is Thursday (GPRO)

The next few days will be big for GoPro. In fact, I think its stock is a good bet to go longer than the passes thrown by Tom Brady and Russell Wilson in the Super Bowl. GoPro (Nasdaq: GPRO) shares have been knocked down significantly since the company let down high-hopes at the Consumer Electronics Show (CES), in my opinion. But GPRO’s latest decline has situated the stock at a sweet spot just ahead of what should be a strong upside catalyst, its earnings report, due Thursday February 5th. Recall that simple speculation about a potential operational announcement at CES sent the stock soaring off similar lows previously. The heavily shorted name remains sensitive to good news, and there is an excellent chance it will have some of that to report this week, so I expect the stock to begin moving ahead of its report and to continue to rally through it. See the GoPro (GPRO) stock report here.

DISCLOSURE: Kaminis is long GPRO. Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Bank of America (BAC) - A Must Buy Here

Bank of America (NYSE: BAC) shares dropped significantly after its EPS report a couple weeks ago. Bank of America and its peers were harmed by an unexpected drop in interest rates that has squeezed their net interest margins. Central bank easing outside the United States has weakened foreign currencies against the dollar. Turmoil overseas has also driven capital to the safe haven store in U.S. treasuries. So interest rates have come down, and the margins of the banks have been squeezed as a result. Click to see the Bank of America (BAC) Report.

DISCLOSURE: Kaminis is long BAC. Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Facebook – Why I Went Long Again

Two weeks ago, on a day when Facebook (Nasdaq: FB) was dropping by more than $2 to around $74.30 a share, I took a new long position. Warren Buffett is known for advising amateur investors to buy when the blood is on the street, and that’s exactly what I did, but for more reason than the blood alone. There are two other good reasons I see further upside for Facebook in the offing and am still long today, despite the share move to over $78. See the Facebook report here.

DISCLOSURE: Mr. Kaminis is long FB. Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

GPRO – GoPro to Top Momentum Names in 2015

In case you hadn’t noticed yet, the tone of trading around GoPro (Nasdaq: GPRO) shares has completely changed. The shares had been beaten down heading into and on the IPO lockup expiration. However, since that focal point of trading has passed, now all investors have to look toward is reports of stellar holiday sales, exceptional operating results, product & market announcements and CES. It appears the significant short position against GPRO shares is unwinding swiftly, and I see even sharper rise in store for the shares ahead. GoPro could be the top momentum name for 2015 – see the report on GoPro here.