Wells Fargo (WFC)
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No thread about this. Today it saw a 12 year low and at these prices....its cheap. But there is risk to nationalization. Apparently this was one of the banks that was on the "good list", I dont know after today. Like BAC 2 weeks ago, this has reason to climb up in a big way in a short amount of time. So my idea is, if have some disposable income put it in here and pull out when it hit it big.
Thoughts, concerns, ideas, opinions....Lets hear them.
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You will see nationalization in BAC and C before you will see WFC get nationalized, which is NOT going to happen IMHO. I think it is definitely going lower as concerns from wachovia mount, but if there are any banks that are worth buying I think WFC and JPM are the two to place the bets on. WFC is the most prudent lender around, I would know since I work there and get to see all of the personal lines, credit cards, and home refi's get declined one after another. They will lend, but only to those who do not need to borrow!
I think it is worth to look into this one. In general I am still pessimistic on financials. I will try to look into WFC, and post my findings in a few days.
But this market is trading on a lot of fear which can take stocks lower which you couldn't imagine could possibly go lower according to TA. Look at COF...this looks so oversold, and yet it drops $2 today.
Seems the norm is to sell any rally. This market seems at this point to be a coiled spring as it is "SO" oversold, but who knows when this spring will pop....maybe when I run out of money trying to play the long side.
Hoping for a spring back up but I dont see anything happening sooon.
I heard the Texas ratio of WFC last quarter was 15%. Before that quarter it was 20%. WFC will be fine. Low tide will drop all the boats. I'll be scaling into WFC soon. Still have to do more DD.