One of the best managed banks out there. Wells Fargo is forced to trade at a low level as all of its peers have skidded down. WFC is resting on a support last seen on AUG 2009.
This seems to be a good buying opportunity for this fundamentally strong bank which is expected to earn $2 per share this year, and $2.5 per share next year. Hence, this stock should be trading at around $30.
Dividends may be raised should this economy remain at this level. We have not seen a contraction yet. However, recent housing data has weaken this sentiment.
Yet, it is noted that July is not a buying season for houses.We may see a huge increase in housing sales in August due to the surprisingly low figure in July.
This is somewhat a V Shape return in housing sales back to the 5mln mark.
With that, WFC fundamentals will be very sound.
Technically, WFC is oversold and it is waiting for a relief rally.
No comments:
Post a Comment