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  • Citigroup Inc. (NYSE:C) and Bank of America Corp. (NYSE:BAC) Massively Undervalued ?

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    Monday June 27, 2011 at 11:03 am EST
    Citigroup Inc. (NYSE:C) and Bank of America Corp. (NYSE:BAC) Stock Report 
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    Shares of Citigroup Inc. (NYSE:C) are trading at $39.88 below the resistance level of $40.26. Citigroup Inc. (NYSE:C) stock is up 5% in last week but is still at a discounted price considering 52 week high of $51.5. Major resistance levels above $39.88 are at $40.26, $41.38, $44.2, and $45.1. Consumer spending unexpectedly stagnated in May as employment prospects dimmed and rising inflation caused Americans to cut back. Reduced spending has made investors to worry about the economy and mostly the financial stocks.

    Bank of America Corp. (NYSE:BAC) is trading at $10.79 at strong support level of $10.6. Bank of America Corp. (NYSE:BAC) is also near its 52 week low of $10.40 and has no major support points below this price. Major Resistance levels for Bank of America Corp. (NYSE:BAC) above current price are at $11.26, $11.76, $12.3, $12.67 and $13.2.

    At this time, only long term investing in Bank of America Corp.(NYSE:BAC) and Citigroup Inc. (NYSE:C) is advisable. Long term options expiring in Jan 2013 will also be a good safe investment. Recent survey by TheStreet revealed that majority of the investors believe that Bank of America (NYSE:BAC) shares will gain at least 20% this year. Richard X. Bove, an analyst at Rochdale Securities LLC said that Bank of America Corp. (NYSE:BAC) is being “massively undervalued” by investors, and its stock will recover as earnings outpace costs linked to troubled home loans. In a note to clients, he said “Under the bleakest of scenarios Bank of America Corp.’s book value will rise in the next three years. At some point the market will adjust to the company’s real values.”

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