Wells Fargo (WFC)

Discussion in 'Stock Market' started by DanK, Feb 13, 2009.

  1. DanK
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    DanK Administrator Staff Member

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    Wells Fargo is currently trading at 15.72, near a 52week low. Time to buy?

    Shares were off about 3% after the bank tacked on a $328 million charge to its fourth-quarter results.

    Although:

    Feb 13 (Reuters) - RBC Capital Markets said the management of Wells Fargo & Co (WFC.N) seemed confident about surviving the current downturn better than most, but the company sees more problems for community banks.

    After a meeting with Wells Fargo's management, RBC analyst Joe Morford said rising unemployment could lead to consumer credit losses, but the fourth-largest U.S. bank expects to absorb them by growing net interest income.

    "Wells pointed to many favorable trends in the mortgage business currently including increased refinancings, a steeper yield curve, improved margins, and a more rationale competitive environment," Morford said.

    The company's capital levels seem adequate and it was unlikely that it would cut its dividend in the near term, Morford said.

    But Standard & Poors analyst Stuart Plesser said a dividend cut may be in the offing as it is unlikely the company will earn its dividend amount in 2009.

    RBC's Morford, who kept his "outperform" rating on the company's stock, cut his price target on the stock to $21 from $25.

    On Thursday, the San Francisco-based bank increased the size of its previously reported fourth-quarter loss by 7 percent due to new investment losses.

    Morford doesn't see this as a material adjustment, and said the loss had been included earlier as part of other comprehensive income in the equity account, and so the non-cash charge will not have any effect on Wells' capital ratios.

    Shares of the company were trading down 58 cents at $16.22 Friday morning on the New York Stock Exchange. (Reporting by Supantha Mukherjee in Bangalore; Editing by Pratish Narayanan)
     
  2. waltky
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    waltky Wise ol' monkey Supporting Member

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    Whistleblower to testify in Wells Fargo probe...
    [​IMG]
    U.S. Justice Dept. orders whistleblower to testify in Wells Fargo probe
    Dec 23 2016 - The U.S. Department of Justice has subpoenaed a high-profile whistleblower in its criminal investigation into Wells Fargo & Co's opening of accounts without customer permission.
     
  3. yiostheoy
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    yiostheoy Gold Member

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    WFB is going to need to pay some hefty penalties.

    I doubt they have even accrued them yet.

    The stock is going to keep sliding therefore.

    Can't believe this happened there. You can't make this up.
     

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