Is Bank of America an Attractive Investment?

With shares of Bank of America (NYSE:BAC) trading around $16, is BAC an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Bank of America is a financial institution serving individual consumers, small- and middle-market businesses, corporations, and governments with a range of banking, investing, asset management, and other financial and risk management products and services. With its banking and various non-banking subsidiaries throughout the United States and international markets, the company provides a range of banking and non-banking financial services and products through several business segments: consumer and business banking, consumer real estate services, global banking, global markets, global wealth, investment management, and other.

Bank of America is increasing salaries for some managing directors at its investment bank in the European Union by about 20 percent to $500,000, according to a person with knowledge of the plan. The raise in base pay for client-facing managing directors is effective immediately and comes amid tougher EU rules on bonuses in the region, said the person, who asked not to be identified because the details are private. European regulators are preparing to outlaw bonuses that are more than twice fixed pay to prevent a repeat of the risk-taking that helped spark the 2008 global financial crisis. Banks are looking for ways to sidestep the stricter EU bonus rules on compensation, which will apply to awards given in 2015, based on this year’s performance.