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Buy recommendation for Wells Fargo

godawgstgodawgst Member, Swaye's Wigwam Posts: 2,405
First Anniversary 5 Awesomes 5 Up Votes First Comment
Swaye's Wigwam
edited May 2022 in Tug Tavern
Trading below 24. Book Value around 40. Management looking to take 10 billion of costs out of business and New CEO came over from JP Morgan learning from Jaime Diamond who made his name doing the same.

They are in penalty box for past Senior Management actions who of course "didn't know" forcing their employees to hit sales quota which included signing up millions of customers for products and services that didn't ask for it.

The only solution for this is time and just churn along until it's in the rearview mirror.

New Management has done all the right things with the regulators and politicians (yes sir/no sir, sorry sir, etc)

Stock was as high as 52 b4 pandemic. Last quarter slashed dividend by 80% to appease said regulators (and save cash as well) down to a dime so yield around 1.7%

One of the things the Bull has learned is when going after broken companies (which Wells fits the bill) is that you don't start to look at it until it's down 50%, and often it will get close to down 80% before it bottoms.

Initiating position today. With reinvested dividends, at some point in next 3-5 years stock will get back to mid 40's. Add in dividends and looking at a double.





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