abbyz1

Why BAC Will Beat: Understanding a New Bull Market Is Not Underway

i have a lot more confidence in warren buffett's opinions that yours and he still owns a big piece of wells fargo. if you are so confident about your views why don't you short wells and the entire financial sector? there are certainly always things to complain about with our system but its still the best one out there. the capitalist system is doing what it always does, adjusting to new realities, and then moving forward. i think its incredibly foolish to bet against its 100 year+ history of success in reaction to a two year downturn, however severe it might be. the market will eventually come back with a vengence, and mr. buffett's $45 billion net worth, built over 50 year of investing experience, attests to this fact.

Nathan's Famous: Well-Known Brand, Unknown Stock

I agree with all your points and, in addition, I would net out the excess cash when looking at the P/E. There is close to $35m of excess cash or $5 to $6 per share. Net of excess cash you are paying about $8 or $9 per share vs 77 cents of EPS or less than 11x or 12x. Excess cash balances should continue to build up over time since there are few working capital or capital expenditure requirements here. Also you have a very smart lead investor in Steel Partners with close to 15% ownership. I agree that NATH is a good bet.