Watching Citigroup (C) Climb Made Me Buy Bank of America (BAC)

I own Citi and write about it often.  Citigroup has been getting a lot of attention lately as shareholder activists try to unlock value.  What stock is next?

I, and others, bought Citigroup (C – $55.05) because it has a p/e of 11, a yield near 4%, a solid consumer franchise, and a lot of smart bankers.  What other bank fills that value and great franchise?  Bank of America (BAC – $51.03).  So yes, I just added to my B of A position at $51.04.  I'll sit and collect my dividend.  In the meantime, I wouldn't be suprised to see hedgies (hedge fund managers and other speculators) wake up and drive up Bank of America in sympathy with Citigroup as they look for similar plays.

Disclosure:  I own Citigroup (C) and started buying back in 1990.  I own Bank of America (BAC).  I have banking relationship with both banks for business and personal reasons.

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