User 54645

Wachovia on the Cheap? Think Again

"as it seems improbable they can keep paying a 13% dividend yield with negative EPS"

You can be certain they aren't going to do that, and that the market has factored a large dividend cut into the price, as evidenced by the fact that it's at 13%. Most likely, they will eliminate the dividend altogether, which would be a good move.

You really can't base an assessment of WB on market cap. Market cap has already fallen by $85 billion since last year, and they obviously have not lost that much. The market is simply discounting expected losses into the stock price. All of this bad news is already factored in several times over. If they have a quarter where the loss is less than expected, you could see an uptick in the price.

Thursday Outlook: Crude Awakening

Exactly right. It is a national disgrace.

Congress is primarily to blame for all of this. And since it's the Democrats who've had their way on energy, it seems like the most blame should go to them. They've put all our eggs in one basket--conservation. Unfortunately, they forgot to mention to the masses that "conservation" is just another way of saying "Do without."

And what is truly aggravating is that the guys who caused all this pain are now being rewarded for their incompetence (or maliciousness, depending on your view) by getting re-elected for another 6 years.