User 331175

Reviewing Wells Fargo's 2009 Shareholder Meeting: No One Really Knows Anything

1) WFC lost money in Q1 and did not make money if you exclude the one time $4.7 billion write-downs gains. 2) they need more TARP .

Moody: "Wells Fargo's current tangible common equity ratio and Tier 1 regulatory capital ratio are comparatively low and its holding of non-TARP preferred is relatively modest. As a result, if its non-TARP preferred stock were to be exchanged into common equity, the resulting new layer of equity would not likely be sufficient to address Wells Fargo's capital levels. This makes the PPS and WITS more susceptible to an early acceleration of the forward contract and potential exchange into common equity.
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Bove : " Wells Fargo currently bolsters a Tier 1 capital ratio of 8.28%, the lowest of all the US's major lenders. Further, Bove points to WFC's loan-to-deposit ratio, measuring the percentage of cash it has lent out, which currently stands at 103.1%, an indication that the bank is making new loans that hold long-term debt. Such debt could "eventually force Wells to cut back on lending", further damaging the condition of its sales model.

In order to pay back the Treasury's funds, and, eventually, continue being profitable, Bove believes Wells Fargo should concentrate on downsizing its balance sheet over the next several quarters. "

Reviewing Wells Fargo's 2009 Shareholder Meeting: No One Really Knows Anything

1) WFC lost money in Q1 and did not make money if you exclude the one time $4.7 billion write-downs gains. 2) they need more TARP .

Moody: "Wells Fargo's current tangible common equity ratio and Tier 1 regulatory capital ratio are comparatively low and its holding of non-TARP preferred is relatively modest. As a result, if its non-TARP preferred stock were to be exchanged into common equity, the resulting new layer of equity would not likely be sufficient to address Wells Fargo's capital levels. This makes the PPS and WITS more susceptible to an early acceleration of the forward contract and potential exchange into common equity.
"
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Bove : " Wells Fargo currently bolsters a Tier 1 capital ratio of 8.28%, the lowest of all the US's major lenders. Further, Bove points to WFC's loan-to-deposit ratio, measuring the percentage of cash it has lent out, which currently stands at 103.1%, an indication that the bank is making new loans that hold long-term debt. Such debt could "eventually force Wells to cut back on lending", further damaging the condition of its sales model.

In order to pay back the Treasury's funds, and, eventually, continue being profitable, Bove believes Wells Fargo should concentrate on downsizing its balance sheet over the next several quarters. "

Wells Fargo: Bank of America Redux

Bove who loved this co just downgraded it “neutral,” citing concerns that its balance sheet appears overextended.

8:23 (Dow Jones) Wells Fargo's (WFC) balance sheet is over-extended, Rochdale Research analyst Dick Bove says in downgrading WFC to neutral. Bove says WFC needs a new strategy to contract its balance sheet over the next few quarters in order to meet higher capital and reserve demands. Bove believes WFC's balance sheet is overextended based on its Tier 1 ratio of 8.28%, the lowest of the major banks, and its loan-to-deposit ratio of 103.1% suggests it may be funding new loans with long-term debt, meaning loan growth must be curtailed. Bove had started coverage of WFC at buy two weeks ago, after its 1Q preannouncement. WFC down 4% premarket to $20.55. (EBW)

Bove cut the rating on Wells Fargo stock to "Neutral" from "Buy," on concerns that the San Francisco-based bank's cash position is relatively low. This may force the bank to adjust its balance sheet and curtail loan growth, Bove said.

Bove suspects that Wells, unlike its peers, has spent the funds and therefore may not be able to pay them back.
Meanwhile, its loan-to-deposit ratio, which measures how much of the bank’s cash has been lent out, stood at 103.1 percent, suggesting that the bank may be funding new loans with long-term debt. He said that this strategy could eventually force Wells to cut back on lending, hurting its revenue stream.
In addition, the bank’s low cash reserves compared with its peers suggest that Wells Fargo may have spent the $25 billion in government funding it received from the Troubled Asset Relief Program, Mr. Bove said. That would indicate that it won’t be able to pay it back anytime soon.

Meanwhile, he said, losses from the bank’s Wachovia unit as well as its consumer credit divisions could eat up gains it has made in other profitable departments of the bank.

Wells Fargo: Bank of America Redux

The net unrealized loss on securities available for sale declined to $4.7 billion at March 31, 2009, from $9.9 billion at December 31, 2008. Approximately $850 million of the improvement was due to declining interest rates and narrower credit spreads. The remainder was due to the early adoption of FAS FSP 157-4, which clarified the use of trading prices in determining fair value for distressed securities in illiquid markets, thus moderating the need to use excessively distressed prices in valuing these securities in illiquid markets as we had done in prior periods.

So that's about a $4.4 billion benefit form the rule change. Given that the bank only made a net profit of $3.05 billion, that more than explains the whole thing.

MetroPCS: A Short for 2009

WOW WOW WOW check Press Release (Tuesday January 6, 6:00 am ET)
MetroPCS just released that Net Additions of new customers for Q4 was 520,000 WOW WOW WOW
is MetroPCS a short for 2009? i do not think so.


target $22.00 and higher soon. (that is after Boston and New York lunch.)

“We are very pleased to report fourth quarter net additions of 520 thousand, the highest quarterly net additions in company history. During the fourth quarter and for the full year 2008, our strong subscriber growth continues to prove the resiliency of the MetroPCS business model in the midst of the current unprecedented economic environment. As voice continues to go wireless, our innovative unlimited service offerings are uniquely tailored to provide subscribers with a predictable, affordable and flexible wireless solution that meets their needs,” said Roger D. Linquist, MetroPCS’ Chairman, President and Chief Executive Officer.

“This year, for the sixth consecutive year, we have grown our subscriber base by 35% or higher. We are excited about our future growth potential given current landline replacement trends, the resiliency of our business model, as well as the incremental growth we expect from our planned service launches including Boston and New York in early 2009.”

Press Release:
biz.yahoo.com/bw/09010...
----------------------...

On Jan 05 08:27 AM User 331175 wrote:

> On 10/30/08 Total Subscribers at the end of 3Q = 4,847,314
>
> On 11/05/08 MteroPCS reported that “recently surpassed five million
> subscribers”.
> That is over 152,686 Net Additions for one month alone
>
>
> Wait till tomorrow to hear the total Net Additions for Q4. If it
> is over 400,000 as I predict, you will/may re-evaluate your shorts
> for 2009

MetroPCS: A Short for 2009

WOW WOW WOW check Press Release (Tuesday January 6, 6:00 am ET)
MetroPCS just released that Net Additions of new customers for Q4 was 520,000 WOW WOW WOW
is MetroPCS a short for 2009? i do not think so.


target $22.00 and higher soon. (that is after Boston and New York lunch.)

“We are very pleased to report fourth quarter net additions of 520 thousand, the highest quarterly net additions in company history. During the fourth quarter and for the full year 2008, our strong subscriber growth continues to prove the resiliency of the MetroPCS business model in the midst of the current unprecedented economic environment. As voice continues to go wireless, our innovative unlimited service offerings are uniquely tailored to provide subscribers with a predictable, affordable and flexible wireless solution that meets their needs,” said Roger D. Linquist, MetroPCS’ Chairman, President and Chief Executive Officer.

“This year, for the sixth consecutive year, we have grown our subscriber base by 35% or higher. We are excited about our future growth potential given current landline replacement trends, the resiliency of our business model, as well as the incremental growth we expect from our planned service launches including Boston and New York in early 2009.”

Press Release:
biz.yahoo.com/bw/09010...
----------------------...

On Jan 05 08:27 AM User 331175 wrote:

> On 10/30/08 Total Subscribers at the end of 3Q = 4,847,314
>
> On 11/05/08 MteroPCS reported that “recently surpassed five million
> subscribers”.
> That is over 152,686 Net Additions for one month alone
>
>
> Wait till tomorrow to hear the total Net Additions for Q4. If it
> is over 400,000 as I predict, you will/may re-evaluate your shorts
> for 2009

MetroPCS: A Short for 2009

inCode predicts changes in 2009 for wireless industry

The wireless market faces a serious shakeup in 2009, a major network operator outsources its network, and non-telecom players pose a bigger threat to the telecom industry in 2009, according to inCode, a business strategy and technology consulting firm that claims an 80% accuracy rating of past predictions.

In wireless, the rich will get richer, but the low-cost guys at the bottom -- including Leap Wireless, US Cellular and MetroPCS – will also thrive by focusing on specific segments, said Rob Prudhomme, vice president of Practice Development for inCode. It’s the service providers and equipment vendors stuck in the middle that face a scary future, and that group includes Sprint, T-Mobile, Motorola, Alcatel-Lucent and Nortel Networks, Prudhomme said. Nokia and Ericsson lead the wireless industry with more than 60% market share, and Huawei and ZTE Technologies compete effectively on price at the bottom, he said. inCode’s prediction is that both vendor and service provider ranks shrink to three major operators and three major infrastructure providers.

Other predictions:

2. Cord-cutters will move at faster rates to low-cost wireless providers such as Leap and Metro, Prudhomme said. “As people look at their household budgets, those that have to choose between wireless and fixed-line services are going to move to unlimited-plan carriers,” he said. “Companies like Leap and Metro PCS, which focus on wireline replacement at the low end of the market, [will] see their fortunes improve dramatically.” The movement to wireless data and away from wireline broadband won’t be as fast.


more here telephonyonline.com/wi...

MetroPCS: A Short for 2009

On 10/30/08 Total Subscribers at the end of 3Q = 4,847,314

On 11/05/08 MteroPCS reported that “recently surpassed five million subscribers”.
That is over 152,686 Net Additions for one month alone (November)

Wait till tomorrow to hear the total Net Additions for Q4. If it is over 400,000 as I predict, you will/may re-evaluate your shorts for 2009