Although banks will continue to face earnings pressure for the next 3 to 5 quarters, the proposed Wells Fargo merger with Wachovia will prove to be a positive transaction for Wells and Wachovia shareholders. Wells does not anticipate the transaction to be accretive to earnings until late 2010 or early 2011. Ultimately, the combined firm will have a massive breadth of products and services to offer its customers which will improve revenues. Furthermore, Wells will be able to bolster its securities business as well as improve it wealth management business with the aquisition of Wachovia's
We have finally reached a point where all denial is gone and we are ready to admit the error of our ways. Sure, there were plenty of folks ringing the alarm bells years ago, but universal acceptance of the fundamental economic calamity that faces us from every corner of the world, and every person with two cents to rub together, has just now ...
The accompanying table presents a 20-stock defensive growth portfolio which I believe will outperform the overall market as measured by the S&P 500 Index as the current panic trade comes to an end and investors stop selling stocks regardless of their fundamentals. The average PEG ratio for this group of stocks is below one and the average dividend yield of 4.4% is nearly two times the S&P 500 ETF (SPY) yield of 2.4%. All of the stocks have a market cap over $1B with an average of just under $75B and the indust
Wachovia was once a > $100bn company. Wells is currently over $100bn. If they can survive the downturn, out the other side is a behemoth. Wachovia has some beautiful bank branches, and very attractive deposits. This is much better than the CitiGroup acq'n, for frightened Wachovia depositors. WAMU depositors are likely to move to Wells anyway, so Wachovia is a much better geographic expansion for them.
Wells Fargo To Buy Wachovia for $15 Billion By Joseph Woelfel The deal, which values Wachovia at $7 a share, is being done without government assistance In a statement Friday, the companies said the transaction requires no financial assistance from the Federal Deposit Insurance Corp. or any other government agency.
Citigroup earlier this week said it reached to acquire all of the banking subsidiaries of Wachovia, but the deal was being done with assistance from the FDIC. Wells Fargo will acquire Wachovia in a
Wells Fargo (WFC) has emerged as the leading bidder over Citigroup (C) to acquire Wachovia (WB) as of late Sunday night, according to the New York Times. Despite finalizing plans for the $700B bailout plan for bad debts, the Fed is unwilling to guarantee any of Wachovia's assets as it did with JP Morgan's (JPM) take-under of Bear Stearns. The crisis for Wachovia intensified on Friday with the shares losing over 25% of their value on the failure of WaMu and $31B write-down by JP Morgan on bad loans from the troubled thrift. Wit
"Warren Buffett's holding company, Berkshire Hathaway (NYSE: BRK.B), has been the single greatest investment of our lifetimes," says Alexander Green, noting, "His compounded annual gain from 1966 to 2007 was 21.1% vs. 10.3% or the S&P 500."
In the Oxford Insight, the investment director explains, "It is now time to buy the 'ultimate no-brainer'." Here's his assessment.
"Despite this strong long-term performance, Buffett experienced a rare earnings letdown during the second quarter of this year.
After Buffett teased the investing world Friday saying he bought more of either Wells Fargo (WFC) or American Express (AXP), folks are speculating as to which one he bought. I was under the impression Buffett and Bekshire (BRK.a) had virtually tapped out their ability to buy more American Express shares.
After buying 13% of the outstanding total, in 1995 Buffett agreed to the following in a letter to the Chairman Harvey Golub. The letter said Berkshire would not:
(1) acquire or retain shares that would cause its ownership of American Express** voting securities to equal or exceed 15% of t
Nucor Corporation (NYSE: NUE) - This is one of the world leaders in the idea of mini-mills. This smallish steel producer prides itself on running a tight ship, pays a dividend and has a P/E under 9. The steel industry has been volatile in recent years with many
Financials have staged an impressive rally from extremely oversold levels," says Kelley Wright, editor of the top-rated IQ Trends, which focuses on high quality, blue chip, dividend-paying stocks. Here's his top long-term buys among banks.
"It is increasingly evident that the banking sector is dividing into two distinct camps; the have's and the have not's. The 'have's' are:
"The financial sector got a boost after our Wells Fargo (NYSE: WFC), a buy recommendation in our model income portfolio, reported better-than-expected earnings," notes Jack Adamo.
The editor of Insiders Plus, explains, "While Wells, like virtually every other bank, is dragging its heels a bit on recognizing losses on bad mortgages, there were elements of the report that were unquestionably great."
"Whatever the “reason,” for the rise in financials, the fact remains that the group firmed. This was the relief rally I’ve been expecting for a few weeks.
"The financial sector got a boost after our Wells Fargo (NYSE: WFC), a buy recommendation in our model income portfolio, reported better-than-expected earnings," notes Jack Adamo.
The editor of Insiders Plus, explains, " While Wells, like virtually every other bank, is dragging its heels a bit on recognizing losses on bad mortgages, there were elements of the report that were unquestionably great.
"In its latest quarterly report, Wells Fargo reported:
o. Revenues were up 16% year-over-year. o. Average loans were up 18% year-over-year.
They will acquire others w/ a rich cash balance sheet. When the worst performing banks split between good bank and bad bank, WFC will scoop up the good bank, and put that cash to work for shareholders.
Wells Fargo's (WFC) news of better than expected earnings and a 10% dividend hike sent the stock up nearly 33%. It also powered the overall stock market up nearly 2.5%. This is a perfect illustration of what we have been saying about the banks. Prior to today almost all banks were being treated like they would dry up and blow away, and that is simply not the truth. Banking is the oil that allows local and international trade to occur. No banking and we are back to Mayberry, Green Acres, or Ozzie and Harriett. Those were the good old days, but those days are gone.
Citigroup prolonged legal battle
- New York Times:
Citigroup fired the first shot in what could be a prolonged legal battle, persuading a New York judge to temporarily block Wells Fargo...
Early Options Activity
- Taking an early look at the options market, we found the following names that may be worth watching throughout the day for further indication of invest...
We have finally reached a point where all denial is gone and we are ready to admit the error of our ways. Sure, there were plenty of folks ringing the alarm bells years ago, but universal acceptance of the fundamental economic calamity that faces us from every corner of the world, and every person with two cents to rub together, has just now ...
This is a continuation of 
Financials have staged an impressive rally from extremely oversold levels," says 
"The financial sector got a boost after our 
