Wachovia

BofA made sense to buy when it dipped under $20.
Wachovia makes no sense - there are long-term negative outlooks for profitability still... it'll dip again, and I'll buy when it gets down to near single or single digits.

 

It was in single digits.

 

I think he means when it gets into single digits AGAIN.

 

Wachovia is doing all they can to recover...

 

No wonder they say they are well-capitalized!!!

 

What is the difference? They aren't going out of business or staying that low forever.

 

I'd imagine he means he'll buy the stock WHEN it gets to single digits again and sell when it goes up. He doesn't see the reason for yesterdays 20%+ runnup because WB's fundamentals still suck.

 

there's just no way a bank that size will stay that low. Seems people over analyze these things

 

Agreed...it's actually a simple concept. WB is a blue-chip. The only 'danger' right now is if some other bank tried to buy them out, but the only other banks that could are not in the buying position right now, and the fed regulations around % of deposits, etc. would make the purchase of bank this large nearly impossible for another large bank.

 

I disagree. There are a LOT of bad things related to Wachovia right now. I REALLY want them to do well, but money laundering claims, agents raiding securities offices, and the HUGE loan portfolio from GW that is ALL extremely risky leads me to believe that we could see YEARS of these kinds of multi-billion dollar losses.

If that's true, no one is acquiring them at their current cost - the loan portfolio at risk from GW is larger than their capitalization (significantly larger). So, I'll buy if it really gets cheap again... Wall Street loves job cuts, so we get a 30%+ spike, but I haven't heard any really good fundamental news, like mortgage default rates are slowing down or investment banking is making a profit or whatever...