Facebook Market Value Tops $100 Billion and 2 Other Hot Stocks to Watch

Facebook Inc. (NASDAQ:FB): Current price $41.50

On Monday morning, Facebook’s market value topped $100 billion over optimism that the social network can boost its sales from mobile advertising. Shares are up around 2.75 percent in late morning trading on heavy volume and earlier touched $41.94 for the highest intraday level since Facebook’s IPO on May 18, 2012.

By the end of last week, the stock had advanced by 52 percent in 2013 versus a 17-percent gain in the Standard & Poor’s 500 Index and shares are now trading at around 181 times earnings, which is a greater price-to-earnings ratio than all but three firms in the S&P 500, says data compiled by Bloomberg.

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American Equity Investment Life Holding Co. (NYSE:AEL): Current price $20.01

American Equity announced Friday that it will commence exchange offers to purchase for cash and, in certain circumstances, newly-issued shares of its common stock, any and all of its $200 million principal amount of outstanding 3.50-percent convertible senior notes due 2015, and any and all of its $115,839,000 principal amount of outstanding 5.25-percent contingent convertible senior notes due 2029. The exchange offers will expire at 12 pm, Eastern Time at the close on October 21, unless extended or earlier terminated by the firm.

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Bank of America Corp. (NYSE:BAC): Current price $14.62

It appears that recent comments by BofA Chief Financial Officer Bruce Thompson support the higher valuation investors place on the firm, compared to Citigroup and JPMorgan Chase.

Analyst Christopher Mutascio at KBW, on Sunday after a meeting with Thompson, wrote in a note to clients that the Charlotte-based bank’s “management expects Legacy Asset Servicing costs to fall from $2.3 billion in the second quarter to below $2 billion per quarter by the fourth quarter.” The fourth-quarter projection is lower than the $2.1 billion that Thompson had estimated during the second-quarter earnings call on July 17.

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