BAC's underperformance started when the rumors started about them acquiring BCS, and while they didn't have the upside surprise that C did with respect to revenues, they have a lower p/e and an essentially equal PEG, so the fundamentals favor BAC with its lower p/e
it's true that the subprime fears have affected financials, but that has been across the board, regardless of exposure, as most people don't really know what any of these financial companies' exposure is to mortgages, CDO's, mortgage insurance, other securitizations and bonds, fees and commissions on same, gain on sale profits, etc
even though the current proposed acquisition is "only" 21B or so for lasalle, BAC is seen as being back on the acquisition trail, and investors don't like that uncertainty
if BAC came out tomorrow and said we have decided we will absolutely do zero acquisitions in the next two years, the stock would jump 2 points in a day...again, the evidence is right there in the intraday chart, where just a court decision immediately caused an upward spike in the stock price, even though the company itself would consider the court decision a setback, not a victory |
