CNBC is reporting that merger talks between Citigroup (C) and Wachovia (WB) have advanced, with a meeting scheduled today for Citi executives. The major deciding factor is the status of $120B in bad debts for Wachovia, with Citi looking for help from the Fed as part of the bailout plan to sell the troubled assets. Wachovia has $400B in deposits, making it the sixth largest bank in the U.S. by assets with a strong presence in the East and Southeast regions.
My favorite pick for a quick trade on the massive Fed bad debt bailout plan is Wachovia (WB) as the stock has traded with extreme volatility over the past three months and could easily double from my purchase price today of $10 per share this morning once legislators come to an agreement. If you believe legislators will reach an agreement soon on a bailout, this is a good trade as it will allow Wachovia to jettison bad mortgage debts associated with its Golden West purchase. Also, Wachovia was one of the biggest gainers last wee
The financial sector and overall stock market reversed course in late-day trading today as word spread that U.S. Treasury Secretary Hank Paulson plans to propose a government vehicle to Congress this evening which would take bad mortgage debts off the books of banks in a similar fashion to the Resolution Trust [RTC] during the savings and loan crisis nearly two decades ago. Major market indexes in the U.S. ended the day in the green by about 4 – 5% on average and followed a gap up at the open on pre-market news of a coor
..so I went out to a strip club on Monday and overdrafted on my checking account by about 10 dollars a day later. The next day Wachovia charged me $70 in overdraft fees. I think Wachovia will emerge a winner because they are everywhere (at least in New Jersey where I live), and because they are thieving bastards.
When considering if financial stocks have hit bottom first consider this research piece by Bridgewater , the worlds 2nd largest hedge fund. It doesn't bode well for WB (which is already in bad shape), the financial industry, the US Dollar, or the US economy in general. This is no time to be taking speculative positions in securities that neither you or I have the ability to analyze completely enough to make a sophisticated investment decision. In markets like these you are far better off protecting your capital than trying to catch falling knives.
TheStreet.com's Jim Cramer says lower gas prices mean the numbers are too low.
People are missing this retail move. They are missing it because the market is deciding right now that the guidance companies are giving is just plain wrong given the $3.50 at the pump (although premium's a lot more expensive). They are also recognizing that the strong are surviving and thriving and taking share in a radica...
Wall Street's top ranked bank analyst, Tom Brown, says, "bank stocks have bottomed." "If you wait for the good news, you'll wait too long," says Brown of Bankstocks.com.
Brown believes many bank stocks are selling at rock bottom prices, calling them "extraordinarily undervalued." Brown thinks we are at the beginning of "the greatest financial stock bull market in our lifetime." He writes, "the bears have things all backwards. By the time their wish list happens, the stocks will be zooming"
At least for the moment, I'm cutting losses at this time. Just a couple of days ago, the initial pick was down over 25% (as WB had bounced an additional 25% from my NEG call at 14) and while it may continue to fall further if I hung in there, I'm not sure where the market or the financials are headed. So as I move towards a more positive market stance, the NEG call on WB is rolled off - at least for the moment.
I still don't think the financials are close to where I want to my money, but I'm not sure I want to be on the short side either.
TheStreet.com's Jim Cramer says all that money has to go somewhere, and this is a likely destination.
Clash of the ideals! Oil's down, and what can you buy when there's so much bad bank news? What can you buy when Wachovia (NYSE: WB) (Cramer's Take) is boosting reserves and Morgan Stanley (NYSE: MS)) (Cramer's Take) is still being pursued by authorities and JPMorgan (NYSE: JPM) (C...
Barry, Evans, Josephs & Snipes, a financial services firm serving the insurance and financial services needs of high net worth individuals and successful corporations, said today it has reestablished itself as an independent firm following the purchase of the company name, certain accounts and other assets from Wachovia Corp. Announcements have been made that the co...
Oppenheimer's Meredith Whitney is out downgrading Wachovia (WB) to Underperform noting that as more news about WB comes out, they are increasingly convinced that the outlook is bleak for equity shareholders. WB has said that it's in the process of "enhancing the capital efficiency of the balance sheet" and "reducing mortgage exposure."
The firm estimates its mortgage portfolio will decline by 9% sequentially and total on-balance sheet loans will decline by at least 5% by year-end. The problem is the "denominator effect"; the loss numerator grows while the asset denominator declines, resulti
TheStreet.com's Jim Cramer says when the dust settles, we'll notice the reduced equity here, and stocks will rise to reflect it.
Do corporate balance sheets matter? One of the things that you will see in the next few weeks is everyday industrial companies brimming with cash. Y...
If it has leverage....Sell it
- The melt down seems to have begun. The Commercial paper market has totally frozen up. The freezing of the CP market has major ramifications. Only the...
More bad news for the financial sector
- Bond manager Bill Gross wants to spread the bailout wealth. Gross says in a commentary posted on the Pimco Web site Thursday that the government must â...
WB
WB
After the market closed last night, with the 
The firm estimates its mortgage portfolio will decline by 9% sequentially and total on-balance sheet loans will decline by at least 5% by year-end. The problem is the "denominator effect"; the loss numerator grows while the asset denominator declines, resulti
