swingforthefence

Making Sense of Wachovia's 27% Bounce Amid Record Losses

Wachovia stock rallied because Bob Steel managed investors' expectations!

The earnings should not have been a surprise to any. Wachovia gave a very close guess a week or so before the announcement. It gave many investors what they were waiting on, a possible light at the end of the tunnel. I saw Bob Steel instill confidence on Monday. His presentation conveyed that Wachovia is on the right track to preserve its capital over the long haul (through 2010 as conservatively forecasted). I laughed when most of the analysts were already beaten to most of their questions with Q&A documentation. People were watching the stock takeoff on their phones as the meeting went along. If you haven't already heard the announcement, go to Wachovia's website, click on the earnings link and see for yourself.

Bottom line: If Wachovia preserves its capital it can only go up over the long haul.