October 26, 2009
– Comments (17) |
RELATED TICKERS: WFC
will be bankrupt within 15 months. That's all.
Umm, not to belabor the obvious, but there is this guy in Omaha that maybe knows his way around a balance sheet that doesn't agree with you.
Who cares about the Omaha dude; he doesn't have enough money to make a difference.
But Ben will come to the rescue. They have more money than God!
I'm ever so curious how you came up with the 15 month time frame.
That's a pretty bold statement. I don't have an opinion on this one way or the other, but I'm curious as to how you came to such a conclusion.
"I'm curious as to how you came to such a conclusion."
I'm betting on something along these lines...
Ok i'm game so WFC JAN 2011 $2.50 PUT good deal at a nickle with low risk? 20 contacts is $100. Just floating an idea and +1 rec on the thought.....J
Must admit, that thought hadn't occured to me. Good idea nottheSEC.
Almost certainly not, but I don't care one way or the other.
c'mon GMX what does that even mean anymore?
I mean Citigroup was bascially bankrupt over a year ago and they are still "here"
I'll take that action
my WFC is currently collared. long put, short call, long shares. No longer possible to not double my money + on it. :)
but frankly, too big to fail has been pretty well established, Buffet was a buyer earlier in the year and while he isn't as great of a stock investor as myth likes to tell (most of Berkshires money comes from buying businesses, not from buying stocks) he isn't an idiot or uninformed.
Stifel has a buy on them. Their PPS is high enough for a secondary to be tolerable (it would be accretive to book value).
The market doesn't seem to price in a potential bk and so far the market hasn't really missed any potential bk's in 2009.
All those noted, its not a favorite long of mine.
Look closer Matt and one sees that all final resting places for the headless chicken support GMX's hypothesis. I say, render what is left of the bloody chicken down to bones, throw them, and you get the same answer...the big boy banks as they have been will be no longer.
They are technically "insolvent", but no they won't be bankrupt. They will however need to raise additional capital by July 2010. It's a really bold call considering WFC is blessed by Buffet, shouldn't that have some sort of value?
"the s&p is about to collapse... day 78"
Too bad your WFC put options go bankrupt in 3 months. Along with a few others.