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Munger_Disciple
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  • 3 months later...

From a Canadian dollar perspective -- I find that WFC is as cheap as it was during the lows last Sept/Oct (maybe cheaper). WFC was hoovering around $24 then while Canadian dollar was $0.94 so about $25.50 cndn.  Average price today is about $26.70 with the loonie at $1.015 so about $26.30 cndn.  Meanwhile, (over the last 7 or 8 months) I find that WFC has increased in value by more than this 3% premium.  

 

I see a situation where WFC looks very cheap and the Canadian dollar somewhat overvalued.  I have been buying a little also.  About the only large cap of significance I own at the moment.

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Would be nice to pick up WFC at it's pre-QE2 price of $23 and change if that happens.

 

Moody's Puts BofA, Wells Fargo And Citi On Downgrade Review: Cites Risk Of No Government Support, Mortgage Exposure As Risks

http://www.zerohedge.com/article/moodys-puts-bofa-wells-fargo-and-citi-downgrade-review-cites-risk-no-government-support-mort?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29

 

 

 

 

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1)  In my opinion, the idea that they're putting Wells in the same camp as BofA and Citi highlights once again how worthless these guys are.

 

2)  More importantly, all three of these banks are too big to fail (along with JPM).  I mean, the equity could get zeroed out due to a lack of gov't support but there's no way that in the current structure they wouldn't be supported by the gov't as institutions.  Think about it -- where would the FDIC move the deposits...there is no where to put them given their size.  Take a look at a ranking of the largest 50 banks in the US by asset size...after the meltdown, it's all concentrated at the very tippy top.

 

Am I missing something?

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Was going to post this on Viking's USB thread, but this one is newer.

 

I work at WFC.  Obviously, heavily invested as a team member.  Was 100% money market in my 401K, since the stock has been under $28, every other day, move about 2% to the stock.  I wish I could offer some insight, but it's business as usual.

 

Two other banks I own are PNC and BAC, both the tarp pref. 

 

Surprised there isn't talk of PNC here, they run a good shop.  Everyone talks about BofA-Merill-Countrywide, JPM-WaMu-Bear and Wells-Wachovia...but rarely do I hear PNC-National City.  Five years down the road, that might be regarded as one of the better transactions.  PNC also owns 20% of BlackRock.  Management team is solid, Rohr is well respected. 

 

BAC is interesting, I don't expect a resolution to the legal situation(s) this quarter.  I think when Gary Lynch officially joins  the company, you will see one of those quarters that puts much of the uncertainty behind for good.  Was really excited to hear about Lynch joining, the guy is exactly the right candidate.  They sold their BlackRock stake and in the process of selling other non-core businesses this quarter, which is why I expect 2H11 to be Lynch's show.  FY12 should be share repurchase/dividend reinstatement.  They still have such a valuable franchise.

 

 

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