Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, April 25, 2008

Article Excerpt

BANK OF AMERICA CORP. $38.30, New York symbol BAC, earned $1.2 billion in the three months ended March 31, 2008, down 77.4% from $5.3 billion a year earlier. Earnings per share fell 80.2%, to $0.23 from $1.16. Most of the drop was due to a $4.8 billion increase in its loan loss provisions to cover potential future losses in its home equity, small business and homebuilder portfolios. It also wrote down $1.9 billion worth of securities. Revenue fell 6.6%, to $17.0 billion from $18.2 billion. The company’s retail banking and wealth management operations are still doing a good job attracting new clients, thanks partly to recent acquisitions. That should help Bank of America maintain its $2.56 dividend, which yields 6.7%. However, its pending takeover of troubled mortgage lender Countrywide Financial Corp. adds to its short-term risk. Bank of America is a hold. NEWELL RUBBERMAID INC. $21.40, New York symbol NWL, fell 10% this week after it cut its earnings forecast for 2008,…