Bank of America Rallies On Jim Cramers’ Bullish Prediction

The Dow Jones industrial average pulled back 39 points on Wednesday to close at 9,281. While stocks were down across almost every sector, Bank of America (BAC: 8.13 0.00%) shares soared after Jim Cramer made a bullish prediction for the financial stock on Tuesday’s Mad Money show. 

Shares of Bank of America finished up 6.5% after Cramer said the stock “could rally another 50% and maybe even double”. Cramer believes that Bank of America is undergoing a “volatility expansion” and is heading towards $25 per share. Cramer believes that BAC is a cyclical play that will recover along with the economy. He recommends Bank of America as the best way to play an economic recovery. 

Research in Motion (RIMM: 16.49 0.00%) also benefited from the “Cramer effect” gaining 1.6% on Wednesday. As recently as last month, Cramer was bearish on RIMM due to increasing competitive pressures. However, Cramer now acknowledges that “RIMM is going up without me”. 

Other Cramer stock picks: 

NCR Corp (NCR: 21.44 0.00%) fell 1.1% – After Cramer said he was not a fan of the stock.

Elan (ELN: 13.44 0.00%) dropped 1.5% – “One of my least favorite drug companies.”

PPG Industries (PPG: 91.61 0.00%) jumped 3.7% – Cramer reiterated his bullish position on the stock and their 4% dividend yield.