AG Edwards Inc. (AGE)

All Comments on AGE

  • commenter
    TM65
    Sep 27 02:26 PM
    Trying (and Failing) To Understand Wachovia's A.G Edwards Acquisition [view article]
    Why did A G Edwards sell to Wachovia? What was the real reason? Who made money from the sell? I know a shareholder that lost. I do not think I am the exception. The above stated reasons from Tom Brown might be misleading. We are now in the middle of a bailout, Sept., 27, 2008 and Wachovia is trying to sell. When did the sales people for A G Edwards know that they were selling to Wachovia? Reply
  • commenter
    SeekingAlpha
    Editors
    Apr 06 05:18 AM
    My Website
    General Discussion on AGE
    Is this a buy or a sell? Reply
  • commenter
    RichL
    Jun 04 08:35 AM
    Trying (and Failing) To Understand Wachovia's A.G Edwards Acquisition [view article]
    I carry no brief for breaking views, but the AGE deal isn’t as bad as you portray. The negative about WB is that they are serial acquirers. However, look at what they are acquiring. Westcorp was the best auto lender, Golden West the best thrift, and AG Edwards the best retail broker. You may disagree with the prices paid, but one must pay up for high quality in any market.

    Does Mr. Brown believe that the staff that is integrating the GDW acquisition is the same personnel to fold in AGE. Yes, it’s the same buyer, but they are different businesses. I don’t see risk emanating from that aspect of the transaction. I lack the omniscience to foretell that this is the top of the market, so I defer to Mr. Brown’s expertise on what the future will bring.

    The value here is that WB sells many structured products to retail. When you can sell hundreds of different products with high-implied volatility, the portfolio effect of this diversification creates a lower volatility portfolio, which can be hedged more inexpensively. This is likely quite profitable, and the added distribution can’t hurt. The two businesses together will likely be stronger. Brokerage has better growth prospects than branch banking. If there can be any cross-selling of product beyond the money-market funds, the deal might be better than you think.     Reply
  • commenter
    Risk Arb
    Jun 02 11:47 AM
    My Website
    Wachovia To Buy A.G. Edwards, Forming Second Largest U.S. Retail Broker [view article]
    I wonder if the easy financing days for a lot of these mergers is over since a lot more of the merger announced recently have been using stock to buy out the target company rather than cash.

    Reply
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