Why Investors Are Buying Bank of America [View article]
Thank you for the article, I find there is an aspect we should pay attention here:
"Bank of America seems to be following the same path as Wells Fargo in terms of mitigating risk in its activities outside the core banking business. .... as long as Bank of America stays conservative and avoids the risky operations that left it overexposed in liabilities before the financial crash."
If there is anything that we can learn (again) from the JP Morgan event is that it's very difficult for companies to change internally. We should never expect corporate management to drastically change. If they have messed up systematically before, it should be assumed they will do it again because it's now pretty much built in into the corporate culture. Of course there are exceptions to the rule.
I'm not saying that BAC would prove to be unwise investment in the long run. Everything has a price, and if one think that BAC is extremely cheap than why not.
What I would consider, though, is the coming extreme volatility and weakness in the global market.
The tide has already left in 2008 and we have seen who's swimming naked and who had a decent swimsuit on -- Wells Fargo was definitely wearing one.
These banks at the end of the day are black boxes. Corporate governance, proven corporate governance, is one of the main aspects we should keep in mind.
Personally, I'm keeping an eye on BAC and would consider it if it drops much lower, while keeping WFC in my pocket.
Good luck! (we'll sure need it in the coming years... that and a good margin of safety)
Goodbye Wells Fargo, Hello Credit Union [View article]
"Wells Fargo (WFC) just reported its third-quarter earnings and, apparently, all is not well at the nation's fourth-largest bank, as revenue and earnings came in at $19.6 billion and $4.1 billion, respectively, short of analysts' estimates."
1. WFC's had record earnings. 2. WFC's revenues dropped mostly for non important stuff. 3. WFC's loans increased. You should be cheering this yourself as it is a must for economic recovery, once you understand that you will have a far positive opinion of banks. 4. No one if forcing you to use CCs, I hardly ever do, you can use cash instead. 5. In fact, just keep all your cash at home instead of the bank. If you are not willing to pay for someone else taking the risk for you, then take the risk yourself. 6. Instead of feeling sad about how WFC is going to earn more and more money in the long term, buy their stock now when it is cheap and enjoy future (possibly in 1-3 years) significant increase in the price and dividends. 7. A final suggestion, for successful financial management of your personal life, better keep emotions away.
OshKosh Looks Great Across the Board [View article]
OSK
Thanks for the numbers, a couple of questions if I may:
1. Other than the numbers, do you see this company with any deep value? 2.Do they have any certain advantages over their competitors? 3. If the stock price is undervalued, what is your estimation for the price?
Why Investors Are Buying Bank of America [View article]
"Bank of America seems to be following the same path as Wells Fargo in terms of mitigating risk in its activities outside the core banking business. .... as long as Bank of America stays conservative and avoids the risky operations that left it overexposed in liabilities before the financial crash."
If there is anything that we can learn (again) from the JP Morgan event is that it's very difficult for companies to change internally. We should never expect corporate management to drastically change. If they have messed up systematically before, it should be assumed they will do it again because it's now pretty much built in into the corporate culture. Of course there are exceptions to the rule.
I'm not saying that BAC would prove to be unwise investment in the long run. Everything has a price, and if one think that BAC is extremely cheap than why not.
What I would consider, though, is the coming extreme volatility and weakness in the global market.
The tide has already left in 2008 and we have seen who's swimming naked and who had a decent swimsuit on -- Wells Fargo was definitely wearing one.
These banks at the end of the day are black boxes. Corporate governance, proven corporate governance, is one of the main aspects we should keep in mind.
Personally, I'm keeping an eye on BAC and would consider it if it drops much lower, while keeping WFC in my pocket.
Good luck! (we'll sure need it in the coming years... that and a good margin of safety)
Goodbye Wells Fargo, Hello Credit Union [View article]
1. WFC's had record earnings.
2. WFC's revenues dropped mostly for non important stuff.
3. WFC's loans increased. You should be cheering this yourself as it is a must for economic recovery, once you understand that you will have a far positive opinion of banks.
4. No one if forcing you to use CCs, I hardly ever do, you can use cash instead.
5. In fact, just keep all your cash at home instead of the bank. If you are not willing to pay for someone else taking the risk for you, then take the risk yourself.
6. Instead of feeling sad about how WFC is going to earn more and more money in the long term, buy their stock now when it is cheap and enjoy future (possibly in 1-3 years) significant increase in the price and dividends.
7. A final suggestion, for successful financial management of your personal life, better keep emotions away.
Searching For Bargains Amid The S&P's Most Hated Stocks [View article]
What is you look at the 10 years P/E, the normalized P/E, are they still that cheap?
Alan,
ETM is missing from your list...
OshKosh Looks Great Across the Board [View article]
Thanks for the numbers, a couple of questions if I may:
1. Other than the numbers, do you see this company with any deep value?
2.Do they have any certain advantages over their competitors?
3. If the stock price is undervalued, what is your estimation for the price?