mallarde

Bill Ackman Piled Into Wachovia and AIG Shares

All it took me was a Google search. I was not bold enough to recover much of my loss on the way down with WB, but I made a quick profit.

The Lowdown on Citi / Wachovia

Wasn't this forced by federal regulators? If the shareholders reject it, it could mean that our stock is worth zero, correct? WB might end up declaring bankruptcy because it can no longer operate as a bank because regulators will not allow it.

I bought more shares at $1.90 yesterday thinking that the $1 we got from Citi and the other assets were worth more. Hehe, I just got a 50% return. Not close to offsetting my big losses.

Banking on Trust: What Builds Loyalty?

I agree that banks have completely neglected certain aspects of the customer experience. I've had very bad experiences with both Bank of America and Wachovia in terms of penalties for very small account deficits.

Bank of America in particular has really atrocious customer service in some of its branches and phone services.

Wachovia on the Cheap? Think Again

WB lost all credibility. I have ridden this stock down from $30 and do not see a good ending.

Even Steel does not seem to be giving the company enough credibility. He needs to explain how he intends perform surgery on this company.

What else is left but a fire sale to JPM? A sale at $20 would be a huge premium. Even $15 would be a huge premium.

Wachovia: Buyable?

I hope they cut the dividend. Diluting shareholders and using this money to pay out dividends seems inefficient and desperate.

I would much prefer that they slash the dividend. Why pay out profits WB does not have?

Sad State of Affairs: Wachovia Calls in Goldman to Evaluate Its Loan Portfolio

I have taken a hit on this stock and feel good holding at these levels. Very different company, but the negative feeling towards WB reminds me of AAPL when its stock crashed in 2000 or 2001. It seemed like it could not get worse.

I don't think WB is nearly as good a brand or company, but there is value there that is not being calculated into the price. The hull of the ship is scraping the bottom of the sea and I think it will have to rise.

If this comes on the form of a purchase, I hope WB holders get a one-time gain that offsets their losses to a large degree.

Point of No Return or Perfect Buying Opportunity?

Who cares about hitting the top again? If it recovers half the loss you double your investment in, perhaps, 2 years or so.

I have ridden WB down from an average investment of $27 or so. I hold on because I see the stock recovering to the low-$30s, in a good scenario. This would be a great outcome for me after taking a large hit.

The question in my mind for WB is -- after you write-off the bad loans (taking a worst case scenario view), is that company a good value based on its core business? What are the cash flows of its core business? They seem to be growing at a healthy pace. The brand is strong and they have retail outlets all over the country.