8/4/2019 Yaron Sadan of the "Hard Trade" Warns Investors to Avoid Bank of America (BAC,$BAC)

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August 30, 2011

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Yaron Sadan of the "Hard Trade" Warns Investors to

Avoid Bank of America (BAC,$BAC)

Yaron Sadan of the "Hard Trade" Warns Investors to Avoid Bank of 

 America (BAC,$BAC)ValuEngine is pleased to announce another addition to our stable of 

high quality investment newsletters. Our latest premium newsletter comes to us

from Yaron Sadan and is called "The Hard Trade." Sadan is the founder and

 president of Osher Capital Advisors, LLC (Osher). Before starting Osher, Sadan

worked in the private wealth management group of Goldman Sachs.

Bank of America Corporation (BAC,$BAC), a financialholding company, provides banking and nonbanking financialservices and products to individuals, small- and middle-market

businesses, large corporations, and governments in the United States and

internationally.

One opportunity that I’m not stepping in front of, but that I can’t look away

from: Bank of America. Why would anyone take the liquidity risk and/or credit risk ofBAC here? The only answer is that there is an implied belief that BAC is too-big-to-fail(as are C, JPM, GS, and a handful of others).

8/4/2019 Yaron Sadan of the "Hard Trade" Warns Investors to Avoid Bank of America (BAC,$BAC)

http://slidepdf.com/reader/full/yaron-sadan-of-the-hard-trade-warns-investors-to-avoid-bank-of-america-bacbac 2/4

I’m going to contradict that theory. Obama & Co. will need to make anexample out of the next big bank to fail in order to prove that they are not “socialists”going into the 2012 elections. In essence, someone is going to get sacrificed and I

think it will be BAC or C (JPM really is too big to sacrifice due to its swap and CDS

positions).Regardless, until the banks can find a footing, I don’t believe any market rally

can hold.

ValuEngine has issued a SELL recommendation for BANK OF AMER CP on Aug.

30, 2011. Based on the information we have gathered and our resulting research, wefeel that BANK OF AMER CP has the probability to UNDERPERFORM average marketperformance for the next year. The company exhibits UNATTRACTIVE momentum, 5-

year annualized return andrisk.

Based on available data as of Aug. 30, 2011, we believe that BAC should betrading at $11.78. This makes BAC 28.80% undervalued. Fair Value indicates what webelieve the stock should be trading at today if the stock market were perfectly

efficient and everything traded at its true worth. For BAC, we base this on actualearnings per share (EPS) for the previous four quarters of -$0.43, forecasted EPS for thenext four quarters of $1.25, and correlations to the 30- year Treasury bond yield of

3.62%.

8/4/2019 Yaron Sadan of the "Hard Trade" Warns Investors to Avoid Bank of America (BAC,$BAC)

http://slidepdf.com/reader/full/yaron-sadan-of-the-hard-trade-warns-investors-to-avoid-bank-of-america-bacbac 3/4

Valuation & Rankings

Valuation 28.80% undervalued Valuation Rank 68

1-M Forecast Return 0.78% 1-M Forecast Return Rank 8

12-M Return -33.41% Momentum Rank 14

Sharpe Ratio -0.56 Sharpe Ratio Rank 16

5-Y Avg Annual Return -36.28% 5-Y Avg Annual Rtn Rank 15

Volatility 65.28% Volatility Rank 32

Expected EPS Growth 390.80% EPS Growth Rank 96

Market Cap (billions) 85.02 Size Rank 100

Trailing P/E Ration/a

Trailing P/E Rank20

Forward P/E Ratio 6.69 Forward P/E Ratio Rank 88

PEG Ratio n/a PEG Ratio Rank n/a

Price/Sales 0.82 Price/Sales Rank 65

Market/Book 0.66 Market/Book Rank 86

Beta 2.21 Beta Rank 11

Alpha -0.64 Alpha Rank 10

The Hard Trade Premium Newsletter is now available on our website HERE 

MARKET OVERVIEW

Summary of VE Stock Universe

Stocks Undervalued 79.86%

Stocks Overvalued 20.14%

Stocks Undervalued by 20% 47.51%

Stocks Overvalued by 20% 6.48%

8/4/2019 Yaron Sadan of the "Hard Trade" Warns Investors to Avoid Bank of America (BAC,$BAC)

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SECTOR OVERVIEWSector Change MTD YTD Valuation Last 12-

MReturn

P/E

Ratio

Aerospace 2.97% -8.80% 4.98% 16.49% undervalued 13.20% 20.15

Auto-Tires-Trucks 4.87% -15.82% -26.32% 25.46% undervalued 17.17% 15.55

Basic Materials 3.00% -8.62% -13.63% 17.55% undervalued 34.40% 25.14

Business Services 2.86% -9.75% -7.10% 16.64% undervalued 15.00% 22.57

Computer and Technology 3.49% -10.87% -8.80% 20.86% undervalued 17.56% 38.44

Construction 4.05% -12.56% -23.03% 21.03% undervalued -4.05% 41.31

Consumer Discretionary 3.70% -9.67% -9.24% 20.33% undervalued 16.09% 31.64

Consumer Staples 3.72% -7.24% -11.75% 11.43% undervalued 10.58% 17.71

Finance 3.29% -7.70% -7.26% 16.74% undervalued 5.67% 23.87

Industrial Products 3.73% -9.79% -10.38% 20.67% undervalued 19.10% 19.36

Medical 3.10% -8.51% -2.03% 20.45% undervalued 11.39% 29.15

Multi-Sector Conglomerates 2.92% -10.23% -12.15% 16.37% undervalued 16.94% 22.24

Oils-Energy 3.61% -13.82% -14.63% 16.75% undervalued 29.22% 47.05

Retail-Wholesale 3.71% -8.16% -1.61% 15.03% undervalued 24.10% 23.85

Transportation 3.66% -9.97% -13.54% 10.28% undervalued 2.89% 17.49

Utilities 2.42% -3.20% -0.94% 3.31% undervalued 14.16% 25.88