New York- BAC investors have been frustrated by their stock's poor performance over the last year. The stock is down from May 2009 and BAC's stock decreased in the previous month, while the Dow Jones rallied to its best September since 1939.
Jedd Arricale of T. Row Price Group said that BAC needs to provide more information on margins and returns that it expects its business to return in the future. Many investors are afraid of the revenue BAC will lose due to financial reform. Andyraw Kibbens CEO of The Markets Are Open said "while BAC did not tell investors how much revenue they will lose... I am willing to take the risk that they will remain profitable." Kibbens was pointing to the fact that the stock trades just above tangible book value and that this is usually the quintessential bare minimum price a stock can trade at. Investors are putting pressure on BAC to provide more disclosure in Q3 and answer these questions.
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