Bank of America announced that it will suspend its $4 billion stock buyback and dividend increase because of miscalculations related to its $50 billion purchase of Merrill Lynch nearly six years ago.
Although shares of Bank of America took a 6 percent hit on Monday, falling to its lowest close since November 2013, the stock has nearly doubled in the last two years and has made a 20-percent return for shareholders over the past 12 months.
Steve Cortes, founder of Veracruz TJM, doesn't like the banking sector as a whole but likes Bank of America as a stock.
"I am not a fan of the banks in general," Cortes said during CNBC's "Street Signs." Cortes added that banks are troubled with persistently low interest rates and not enough mortgage origination.
As for Bank of America itself, Cortes cited the company's geographic bias as a reason to like the stock.
"As the name implies, this is truly a bank of America," Cortes said. "It's not nearly as global as its peers. I think that is right now an attribute because the U.S., while not going gangbusters, is doing far better than the rest of the world."
Carter Worth, chief market technician at Sterne Agee, is not optimistic about the stock based on its charts. He notes that Bank of America's shares gapped below its two-year trend channel with news of the share buyback and dividend increase suspensions.
"Even if it doesn't go one penny lower, it's now highly burdened," Worth said. "There are a lot of people who are trapped now in having bought it higher and now the upside is limited."
To see the full discussion on Bank of America, with Cortes on the fundamentals and Worth on the technicals, watch the video above.