Wells Fargo & Company (WFC)

Ticking time bomb

Could go bankrupt. Huge Commercial Real Estate exposure thanks it's takeover of Wachovia. Huge share of the California Real Estate market, with lot's of sup-prime and Alt-A problems already. House prices aint coming back baby - not in your lifetime (and adjusted for inflation not for many generations).

( 0.90 ) yeild? My lemonade stand makes more then that.

Banks lost the biggest bet every made.
They will never recoup losses and with Prime foreclosures and credit card losses heating up I would amazed if any of them survive.

Something is not quite right with WFC - expecting more issues with the Wachovia acquisition.

More bankrupt banks. Need I say more.

There are still a couple more waves of defaults to go through in the mortgage sector from the Option ARMs that are starting to reset plus the collapse of the commercial real estate market. The market seems to think we're bouncing out of the recession pretty quickly while I'm expecting a mild double-dip next spring and summer that will be mitigated some by the government stimulus spending already in the pipeline. This won't be enough to save the banks from a really rough year in 2010, even if the overall economy avoids more shrinkage.

Looks like it is near its short-term peak. More down side risk than upside potential at this price. The government's distraction with other problems may hurt the big banks maintain their stock price. Time to profit take while paper profits are still present.

technical reasons

Rally too high, way overpriced.

Excluding the 19 biggest banks that underwent the stress test, banks with nonperforming loans above 5% had combined deposits of $193 billion, according to Bloomberg data.

Short term hedge.

Seems overbought since much of the "profit" in the recent quarters were accounting tricks. Long term I am unsure

Wait for pull back to 25 for reentry

Tons of share dilution since last year, with a massive crater of long-term debt that's quite visible in its chart.

WFC looks like a safe underperform from here, with upside risk merely matching the market, but downside likely to score 20 or 30 points versus the market within a year. Stay away, especially from up here.

This company will be bankrupt within 18 months.

helocs

Has run it's course, Now the banks have to come up with real earnings which includes toxic assets, cedit cards and cmbs defaults.

OPTIONS ARMS IN cALIFORNIA

Overpriced in consideration of ALT-A resets and shadow inventory.