John Buckingham (Trades, Portfolio), CEO of Al Frank Asset Management and editor of the Prudent Speculator newsletter, purchased a stake in Bank of America (BAC, Financial) during the first quarter.
Bank of America is one of the world’s largest financial institutions, serving individual consumers, small- and middle-market businesses, institutional investors, large corporations and governments with a full range of banking, investing, asset management and other financial and risk management products and services.
Bank of America has a market cap of $142.57 billion, a P/E ratio of 10.95, an enterprise value of $245.15 billion, a P/B ratio of 0.63, and a dividend yield of 1.44.
According to GuruFocus, Bank of America has a 6/10 financial strength rating and a 5/10 profitability and growth rating. It is possible that Buckingham decided to purchase 264,463 shares of Bank of America at the end of the first quarter because the company has increased its EBITDA growth by 52.30% over the previous five years, which indicates a healthy situation for the company moving forward.
Bank of America also has a $21.05 Graham Number according to GuruFocus. The Graham number was used by the father of value investing Benjamin Graham, who was able to mentor the most successful investor of all time,Ă‚ Warren Buffett (Trades, Portfolio). Buffett is currently ranked as the third richest person in the world according to Forbes.com with an estimated net worth of $66.4 billion dollars. The Graham number gives Buckingham a healthy margin of safety because he purchased his stake in Bank of America at $13.88 per share. Below is a Peter Lynch Chart for Bank of America.
Cheers to your investment success.
