Wells Fargo: A Way To Go To Get To Satisfactory

(9min)

Summary

  • Wells Fargo's growth is restricted by an asset cap.
  • The bank must enhance its practices and demonstrate consistent progress in quarterly reports, a process that could take years.
  • Earnings per share growth is possible through share repurchases and improving operating results.
  • Investors need patience, as the bank's turnaround involves more regulatory issues than is typical.
  • Obviously, given the past record, management risk is higher here than would normally be the case.
  • This idea was discussed in more depth with members of my private investing community, Oil & Gas Value Research. Learn More »

Wells Fargo building on Post Road

miromiro

Wells Fargo (NYSE:WFC) has a few past issues that actually dominate the earnings calls. Probably the biggest one is an asset cap that limits the usual growth avenue until this bank "gets its act together". There is a

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Long Player believes oil and gas is a boom-bust, cyclical industry. It takes patience, and it certainly helps to have experience. He has been focusing on this industry for years. He is a retired CPA, and holds an MBA and MA.

He leads the investing group Oil & Gas Value Research. He looks for under-followed oil companies and out-of-favor midstream companies that offer compelling opportunities. The group includes an active chat room in which Oil & Gas investors discuss recent information and share ideas. Learn more.

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