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Wells Fargo Earnings Review

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April 21, 2011 – Comments (2) | RELATED TICKERS: WFC

It was banks for me this week.  It's Wells Fargo's turn in the SWOT-light.

I thought Wells posted a decent earnings report on Wed, but Mr. Market apparently disagreed.  The big trouble spots were declinces in mortgage originations and pipeline and, of course, risks associated with mortgage putbacks and foreclosures.

Bottom line - I think the stock is being put on sale and, if the selloff holds, plan on adding a bit to my position once the blackout window around article publication opens up.

What's your opinion?  Is the selloff warranted or is it time to hop on the stagecoach?

Disclosure:  Long WFC.

2 Comments – Post Your Own

#1) On April 21, 2011 at 2:55 PM, Valyooo (99.54) wrote:

Its a good bank, and probably kinda cheap, but the US is really doing whatever it can to make sure banks dont make a lot of money it seems.  If they cant make more money with spreads like this, idk when they WILL make more money

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#2) On April 21, 2011 at 3:17 PM, buffalonate (94.91) wrote:

Wells Fargo is one of the best run banks in the country.  I am a buyer and I am sure Buffett is buying this stock as we speak.  I really like the banking sector right now because they have come down quite a bit in the last month.  Loan defaults are also going down across all categories.  The tier 1 credit ratio is what analysts use to judge the health of banks and this ratio has been improving across the board for banks lately. 

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