According to Bank of America, BJs suck but Dicks rule

a cartoon for the very few....fnarrr fnarrr

This is not a joke.

Yesterday morning, Bank of America Merrill Lynch made two adjustments to its "USA bullish" US1 portfolio. It removed BJ's (ticker BJ) and added Dick's (ticker DKS). Here's the headline Bofa used in its Coverage...

Dick’s added; BJ’s removed from US 1

....and here's the text of the argument:

Highlights of this issue
The US 1 list is intended to represent a collection of our best investment ideas that are drawn from the universe of “BUY” rated US listed stocks (including ADRs), covered by Bank of America Merrill Lynch fundamental equity research analysts. The list will be managed with a goal of providing superior investment performance over the long term.

Dick’s (DKS) is being added to the US 1 list today. BJ’s (BJ) is being removed from the list today as we are making an adjustment based on the overall composition of the list. We believe BJ’s strategy of targeting mom’s/new families with a broader assortment of SKU’s (7,200 vs. 4,000 Costco) that favors food & consumables (over 70% of sales) continues to drive impressive customer traffic (trending +3-5%). Renewal rates are trending up +0.5-1% vs. last year plus BJ’s plans to re-accelerate store growth in existing markets should also continue to drive membership fee income growth. Significant market share gain opportunities exist for BJ's within their existing markets. We estimate that BJ's has an average market share of 3-4% in its existing operating regions vs. Wal-Mart’s 14-15%, Costco's 4-5% and Sams Club's 2-3% in the same areas. BJ’s continues to be rated a BUY but we are removing it from the list as part of a rebalancing.

For those of you that still think I'm making this up, here's the link to download your own copy. My thanks to reader 'TH' for passing this one along (and for the yoks).