Buffett Gives Bank of America Substantial Boost. Warren Buffett to Invest $5 Billion in BAC.

According to Canada's Globe and Mail:


"Warren Buffett will invest $5-billion (U.S.) in Bank of America (BAC), stepping in to shore up the company in the same way he helped prop up Goldman Sachs and General Electric during the financial crisis. Bank of America shares rose 12.3 per cent to $7.85 in early trading, erasing some part of the stock’s August losses. The jump also makes the warrants for Bank of America shares that Mr. Buffett gets in the deal instantly profitable."


"Mr. Buffett and Bank of America said he made an unsolicited call to the bank on Wednesday morning, offering to make an investment. Even though the bank has said it did not need to raise capital, investors widely believed Bank of America needed more money and to show it could raise funds easily."


http://www.theglobeandmail.com/globe-investor/warren-buffett-buys-into-bank-of-america/article2141428/

Some U.S. Stocks to Watch. IBM, BAC, TOL, JPM. American Dollar Hits New Lows.

IBM (NYSE:IBM) recently announced that it expects to earn $20 per share by 2015. Of course, any prediction that is so many years down the road has many inherent assumptions, and thus is almost certain to be wide of the mark. IBM, however, has been on a tear recently and business is booming. Currently trading at $183 per share, and up over 40% on the year, many investors have missed the party... but buying a well-run business at a reasonable price is a lot better than buying a poorly-run business at a discount.

Bank of America (NYSE: BAC) has recently fallen below $10 per share. This price is a 25 % discount to the company's tangible book value, which will surely be a buying signal for many value investors. Bank of America is highly levered to a recovery in the U.S. economy, so if the American economy does well, look for Bank of America to experience some serious up-side in price.

JP Morgan & Company (NYSE: JPM) - Best in class U.S. bank. Recently J.P. Morgan announced a solid quarter with increased revenue, lower credit losses, and rising income.

Toll Brothers Housing (NYSE: TOL) - For anyone wishing to invest in U.S. Real Estate, Toll Brothers Housing is up 25% for the year and is really showing signs of gaining momentum. The stock is finally getting some positive traction amongst investors and it is beginning to stop the bleeding as it posts lower losses in recent quarters. Keep in mind, however, that this company is still dicey, as its bonds were placed in junk status.

Happy Investing : )