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Stocks Up on Hopes for Greek Deal

Stocks are stronger today as the euro has strengthened, dollar has weakened on an increasing belief that a deal in Greece is possible...word that French banks might be willing to roll over 70 percent of their Greek debt as it matures (taking the remaining 30 percent in cash, presumably) is being greeted positively.

BAC: it would be funny if it wasn't so painful. Traders got a chuckle out of bank analyst Dick Bove's call this morning on Bank of America, saying the stock was "very, very undervalued." He's got a point: tangible book value is $12.99 per share...but the stock is at $10.88....tangible book value is what you get per share if the bank sold everything that has a readily determined market value. So if you sold everything, there would still be north of $2 per share in cash available...per share. Huh? Sounds like BAC is indeed seriously undervalued.

Here's the problem: BAC trading at this kind of discount doesn't mean that investors are stupid or myopic (though they can be), it means they don't believe the book value is accurate. They don't believe the marks being used to value the assets are correct.

By the way, most of the other big financials (Citi, Goldman) are also trading below book.

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