BLOSHI

1 Comment

    • ON: Sun Mar 30th 17:36 PM
      Commented on:
      Wells Fargo Seeking Fed Shotgun Marriage
      Herein lays several representatives of the U.S. financing/banking industries (i.e. probably brokers, mortgagers, hopeful investors) who are analyzing financial data and throwing their own spin on it in attempt to persuade some poor soul to buy “their” stock of choice.

      Well, "BRAVO" to all that want to pore more gas on the US economic fire. You're ONLY going to make the people in the stock market who have the nerves and the cash richer; … like me. Now, I have investments in several industries including a couple financials (Before and after the bottom fell out of the cash barrel). Fortunately, my barrel is backed by two deep pockets and I also sold WaMu at almost $35/share after buying it for about $10/share in 1995.

      Now, WaMu “stock” would be a nice buy, but only for the people who want to hold it as a “long term investment.” - Maybe for 3 to 5 years. It's not a good idea for WFC to buy WaMu. Why? - Some of you ask. Well... my little grasshoppers, WFC and WaMu are in the same high dollar market (i.e. California) where home prices are inflated in comparison to comparable homes elsewhere in America. Additionally, a great deal of Pacific Coastal home owners are upside down with their homes and many homeowners are walking away which equals high levels of “high dollar” bankruptcies, tax liens, real estate auctions, pre-foreclosures, and foreclosures. Now, who do you think holds a great deal of mortgages for these California home owners? Here’s a hint: Option ARMs. Yes, both WFC and WaMu hold these loans. Now, the next question I ask: Who’s in better condition to continuing doing business? Hmmm? You guessed right, WFC !!! They both are really but WFC is in much better position. Have any of you considered investing in WFC or any other companies like AMD, F, GE, XLF, RIMM, etc. Spread your fortune around. Also, …sorry if you didn’t get out of WaMu in time. But, there’s no need to follow one bad decision after another.

      The fact of the matter is WaMu will survive this credit crisis with a couple of bumps and bruises and after selling some of itself and layoffs. WFC should only consider buying some of WaMu for pennies on the dollar, but not the whole thing. As Buffett would say, “I don’t want to buy other people’s problems.”

      In the WSJ, there’s talk of WFC buying NCC; Now, this maybe a good decision. NCC is looking to sell itself and HSBC as well as a couple of other firms are rumored to have some interest. Let me point out that NCC is an eastern bank with a guarantee of beating the street the first quarter of 2008 and maybe for the rest of the year since they still hold about 60% of the VISA IPO shares and sold almost 40% for a nice healthy, wealthy profit. More importantly, they’re not in California. It’s a lovely state. But, it was broke when I lived there in the early 90s and it appears it’s still broke today thanks to the financial industry and several other things I don’t care to talk about.

      Everybody, here’s one more thing to grow on. The financial statements are good tools for analyses. But, also consider “marketplace”. Now, this statement will make more since if you understood WFC, rather Norwest’s history of acquiring small banks in return for big bucks down the road.

      Us old timers know what we're talking about.

      Have fun investing!
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