Bank of American Corp. (BAC), which is getting $15 billion from the U.S. government as part of the Treasury Department’s $250 billion “recapitalization” effort, is doubling its stake in state-owned China Construction Bank Corp., and will hold a 20% stake worth $24 billion in China’s second-largest lender when that deal is finalized.

As the 2009 approaches, we look back to some of the free recommendations we’ve made to TFN eNews readers over the past year.

Our closed recommendations (i.e., stock recommendations with specific buy and sell recommendations), we recorded average gains of 24.1%, with an average holding period of 27 days.

Some gains in particular were truly stellar…

· 50.1% on Smith & Wesson Holding Corporation (NASDAQ:SWHC)
· 87.1% on National City (NYSE:NCC) Jan 2.5 calls
· 79.6% on Boeing (NYSE:BA) Feb 55 puts
· 190% on Boeing Aug 90 calls
· 55.5% on Rex Energy Corporation (NASDAQ:REXX)

But now it’s time to throw in the towel on some duds…

The shipping sector sank with the global recession. If you are still holding any, it’s time to unload shares of:

· China…

The Treasury’s plan to inject $250 billion in capital directly into US banks is underway. But William Patalon III says some of these taxpayer funds will be used by big banks to acquire junior competitors. This means the increase in lending that the plan is supposed to spark will be modest at best. And less competition in the banking sector could mean a rise in fees going forward.

OPEC to Meet in November; Iceland Melts Down; Unemployment Improves; Micron Makes Cuts; National City Next to Fall?; No Christmas Cheer for Retailers

What is next? It’s the question everybody is asking right now. And it’s a tough question to answer. solution is becoming more and more obvious with each passing day. However, Andrew Snyder in Today’s Financial News says the answer could be that we are close to a bottom in equities. But there is likely going to be some more “whipsaw action” over the next few months. 

US stocks have tumbled again today in the absence of a deal on the bailout plan.

Andrew Snyder says the current “neck-breaking” volatility creates great profit plays for contrarain investors. He recommends using puts to bet on further downside for Boeing (NYSE:BA).

To hedge, he advises investors buy call options on National City Corporation (NYSE:NCC). This bank has a solid balance sheet and could soar if the $700 billion bailout is passed in Congress.

For years, investors have bemoaned the low dividend yield on stocks. But with the market down roughly 20%, the yield on the S&P 500 Index is up to 2.25%. That doesn’t sound terribly rich, I know, but it is only slightly less than the average money market is paying right now.

Banking Shares Plummet; Crude Drops on Curbed Demand; Citigroup Stock Slumps to Inception Levels; Volkswagen Chooses Chattanooga; J&J Reports 8% Jump in Profit; SEC Restricts Short Selling; 3-Year European Closing Low; Foolhardy ViroPharma Bid?

Meredith Whitney, the Oppenheimer & Co. (OPY) analyst famous for her prescient financial sector calls during the ongoing banking crisis, has downgraded Wachovia Corp. (WB) to “underperform,” saying prospects are “bleak” for shareholders of the Charlotte-based commercial bank.

Jason Simpkins at Money Week provides some more detail on yesterday’s gloomy data releases…

Home prices as measured by the S&P/Case Shiller composite index of 20 metro areas fell 1.4% in April from March and slumped by a record 15.3% over the year. The group’s composite index of 10 metro areas dropped 1.6% in April, making for a record 16.3% annual drop.

According to the S&P, 13 of the top 20 metro areas are still posting record annual declines with price losses in the double digits for half of the areas.

“The potential is a vicious cycle which we may already be experiencing. Falling home prices are leading to more foreclosures, which cause a further decline in prices,” Richard DeKaser, chief economist at National…