kevin4u2 Posted October 24, 2012 Share Posted October 24, 2012 On CNBC this morning Buffett said he bought more WFC in the last week. Not a surprise. I assume he'll continue to be opportunistic and keep on buying on dips until he hits the 10% limit on ownership. Maybe the stock is just cheap, dip or no dip. Link to comment Share on other sites More sharing options...
boilermaker75 Posted October 24, 2012 Share Posted October 24, 2012 On CNBC this morning Buffett said he bought more WFC in the last week. He always says that. I know, but since WFC is close to 10% of my portfolio, I am always glad to experience that feeling of deja vu. Link to comment Share on other sites More sharing options...
Kiltacular Posted October 25, 2012 Share Posted October 25, 2012 I am seeing that there was very large volume on the the Wells Fargo warrants (2018). I show over 1.5 million traded today -- this seems like 30 or 40x normal. Can anyone confirm this? Was there a very large trade? Thanks guys Link to comment Share on other sites More sharing options...
LC Posted October 25, 2012 Share Posted October 25, 2012 I am seeing that there was very large volume on the the Wells Fargo warrants (2018). I show over 1.5 million traded today -- this seems like 30 or 40x normal. Can anyone confirm this? Was there a very large trade? Thanks guys Bloomberg says the same...no real price movement...maybe the HFT algo's? Link to comment Share on other sites More sharing options...
dcollon Posted October 25, 2012 Share Posted October 25, 2012 There were a couple of large trades around 1:50 at roughly $9.80. The orders were 725,000. Not sure how warrants are counted on the exchange i.e. if it was just one trade and printed twice Link to comment Share on other sites More sharing options...
fareastwarriors Posted October 25, 2012 Share Posted October 25, 2012 Is Wells buying back the warrants? Didn't they do that before? Link to comment Share on other sites More sharing options...
meiroy Posted October 26, 2012 Share Posted October 26, 2012 Is Wells buying back the warrants? Didn't they do that before? There was also one 800K on the BAC.WTA. Link to comment Share on other sites More sharing options...
Kiltacular Posted October 26, 2012 Share Posted October 26, 2012 Thanks for info. / confirmation Link to comment Share on other sites More sharing options...
jose Posted October 26, 2012 Share Posted October 26, 2012 Is Wells buying back the warrants? Didn't they do that before? Management has board authorization to buy back $450M of tarp warrants, which means they could in theory buy back all the warrants at these prices. But after the initial auction buyback of 70M of the 110M total warrants, their purchases have been tapering off: q3/10: 536k q4/10: 114k q1/11: 0 q2/11: 0 q3/11: 167k q4/11: 98k q1/12: 0 q2/12: 35k So 725k would represent a significant increase from what they have been doing lately. I guess we'll find out in the 2012 10k if it was them or not. Does look very weird on a chart. I wonder if Wells (or anyone) negotiated a private purchase, would it show up on the volume chart like this once the transaction is registered? Link to comment Share on other sites More sharing options...
fareastwarriors Posted November 26, 2012 Share Posted November 26, 2012 Interview with Wells Fargo CEO in Fortune http://management.fortune.cnn.com/2012/11/26/wells-fargo-stumpf/ Link to comment Share on other sites More sharing options...
jay21 Posted November 30, 2012 Share Posted November 30, 2012 I am thinking about starting a position in WFC (or MTB or USB). But I am wondering how you guys think about the valuation and growth of the company. I think that they want to retain about ~50% of earnings. Do you then say they make 20% on retained earnings so .5*.2=10% earnings growth? Thinking about the underlying economics of the business, wouldn't they take a retained dollar and turn into a loan, which would yield ~4%? So they have to keep adding leverage to keep a high return on capital, which means ensuring they can keep growing deposits. How do you guys think about deposit growth? Link to comment Share on other sites More sharing options...
fareastwarriors Posted December 7, 2012 Share Posted December 7, 2012 http://finance.yahoo.com/news/wells-fargo-boss-talks-bank-174027047.html another CEO Q&A Wells Fargo boss talks bank fees, economy, taxes Link to comment Share on other sites More sharing options...
mcliu Posted December 7, 2012 Share Posted December 7, 2012 I am thinking about starting a position in WFC (or MTB or USB). But I am wondering how you guys think about the valuation and growth of the company. I think that they want to retain about ~50% of earnings. Do you then say they make 20% on retained earnings so .5*.2=10% earnings growth? Thinking about the underlying economics of the business, wouldn't they take a retained dollar and turn into a loan, which would yield ~4%? So they have to keep adding leverage to keep a high return on capital, which means ensuring they can keep growing deposits. How do you guys think about deposit growth? That's the right way of looking at it. Each retained dollar is not turned into a dollar of loan, but $10 of loans from the leverage. Leverage will definitely help return on equity, but it'll likely remain stable going forward (it's also using relatively conservative leverage, for a bank). Your growth will likely come from deposit growth (cross-selling) and enhanced NIMs (getting tougher). I think conservatively a 50% retention x 1.5% ROA x 10x leverage = ~7.5% growth is reasonable going forward. Link to comment Share on other sites More sharing options...
jay21 Posted December 8, 2012 Share Posted December 8, 2012 That's the right way of looking at it. Each retained dollar is not turned into a dollar of loan, but $10 of loans from the leverage. Leverage will definitely help return on equity, but it'll likely remain stable going forward (it's also using relatively conservative leverage, for a bank). Your growth will likely come from deposit growth (cross-selling) and enhanced NIMs (getting tougher). I think conservatively a 50% retention x 1.5% ROA x 10x leverage = ~7.5% growth is reasonable going forward. But you would need to inject the leverage to get to the $10 in loans from the one in retained earnings. Let me give an example: Awesome Banks balance sheet is: Loans $100 Deposits $90 Equity $10 Loans pay 5%, deposits cost is 0. So the bank makes $5 in interest on the loan. After it collects the interest its B/S is: Cash $5 Loans $100 Deposits $90 Equity $15 So it only has the $5 to loan out. It needs to take in more deposits to gear up and keep RoE high, right? Link to comment Share on other sites More sharing options...
Junto Posted December 8, 2012 Share Posted December 8, 2012 That's the right way of looking at it. Each retained dollar is not turned into a dollar of loan, but $10 of loans from the leverage. Leverage will definitely help return on equity, but it'll likely remain stable going forward (it's also using relatively conservative leverage, for a bank). Your growth will likely come from deposit growth (cross-selling) and enhanced NIMs (getting tougher). I think conservatively a 50% retention x 1.5% ROA x 10x leverage = ~7.5% growth is reasonable going forward. But you would need to inject the leverage to get to the $10 in loans from the one in retained earnings. Let me give an example: Awesome Banks balance sheet is: Loans $100 Deposits $90 Equity $10 Loans pay 5%, deposits cost is 0. So the bank makes $5 in interest on the loan. After it collects the interest its B/S is: Cash $5 Loans $100 Deposits $90 Equity $15 So it only has the $5 to loan out. It needs to take in more deposits to gear up and keep RoE high, right? You have to pay tax and operating expenses, but say you net $2, you can then leverage the $2 to $20 using deposits and other borrowings. Most banks are awash in liquidity it is the loan growth that is the difficult part. So you see the leverage shrinking while margins are shrinking, which is reducing the ROE. Hence, why the bank's are mostly trading at a discount to tangible book value. Note, I think WFC is fairly valued where as there are plenty of banks vastly undervalued. Give it time, and when interest rates rise and loan demand continues to gain steam the financial sector valuations will shoot the moon from current levels. Problem is that is two to three years out. WFC trades at a premium since it has a moat in the home mortgage servicing business. Link to comment Share on other sites More sharing options...
berkshiremystery Posted January 11, 2013 Share Posted January 11, 2013 Wells Fargo Earnings: The Stagecoach Rolls On 2013-01-11 Fool.com http://www.fool.com/investing/general/2013/01/11/wells-fargo-the-stagecoach-rolls-on.aspx Link to comment Share on other sites More sharing options...
Parsad Posted January 11, 2013 Share Posted January 11, 2013 So much love for BAC on this board, but not much talk about the great results at WFC. Cheers! http://www.sec.gov/Archives/edgar/data/72971/000119312513010112/d450286dex991.htm Link to comment Share on other sites More sharing options...
racemize Posted January 11, 2013 Share Posted January 11, 2013 I think because they keep doing what we expect them to, no fan-fare for consistent goodness. Link to comment Share on other sites More sharing options...
Parsad Posted January 11, 2013 Share Posted January 11, 2013 consistent goodness Those are the words I use each time I leave "Five Guys Burgers". ;D Cheers! Link to comment Share on other sites More sharing options...
fareastwarriors Posted January 12, 2013 Share Posted January 12, 2013 WFC CFO recap of quarter on CNBC, http://video.cnbc.com/gallery/?play=1&video=3000140533#eyJ2aWQiOiIzMDAwMTQwNTMzIiwiZW5jVmlkIjoic1VENCtOMEQ1WGRpYXp4R2FONDg3dz09IiwidlRhYiI6InRyYW5zY3JpcHQiLCJ2UGFnZSI6MSwiZ05hdiI6WyLCoExhdGVzdCBWaWRlbyJdLCJnU2VjdCI6IlVTIiwiZ1BhZ2UiOjIsInN5bSI6IiIsInNlYXJjaCI6IiJ9 Link to comment Share on other sites More sharing options...
Parsad Posted January 22, 2013 Share Posted January 22, 2013 Wells increases dividend 14%...looks to return alot more capital after Fed approval. Cheers! http://finance.yahoo.com/news/wells-fargo-increases-quarterly-dividend-213743231.html;_ylt=AppXlnB7KW1373rH94tI8NGiuYdG;_ylu=X3oDMTNycHFxZWNqBG1pdANGUCBUb3AgU3RvcnkgTGVmdARwa2cDMzE1ZThiNTUtN2ZhYy0zM2MwLThiZTItN2I1MzU3NGU2YzMwBHBvcwMyBHNlYwN0b3Bfc3RvcnkEdmVyA2YyZDZjYTIwLTY0ZTQtMTFlMi1iZmZlLTFmZGFmZDY4YWQwYQ--;_ylg=X3oDMTFpNzk0NjhtBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3 Link to comment Share on other sites More sharing options...
Liberty Posted January 29, 2013 Share Posted January 29, 2013 Brooklyn Investor writeup: http://brooklyninvestor.blogspot.ca/2013/01/wells-fargo-is-cheap.html Link to comment Share on other sites More sharing options...
Liberty Posted January 30, 2013 Share Posted January 30, 2013 And a follow up to the post above: http://brooklyninvestor.blogspot.ca/2013/01/mr-market-versus-mr-buffett.html Link to comment Share on other sites More sharing options...
alpha231616967560 Posted January 30, 2013 Share Posted January 30, 2013 And a follow up to the post above: http://brooklyninvestor.blogspot.ca/2013/01/mr-market-versus-mr-buffett.html That is a good, clear-headed post. Thanks for sharing. Link to comment Share on other sites More sharing options...
PlanMaestro Posted February 15, 2013 Share Posted February 15, 2013 Posting this while thinking on another stock. ( http://www.hardcorevalue.com/2013/02/pics-of-day-wells-fargo.html ) Historic P/TBV http://3.bp.blogspot.com/-VYnG5xn1XWM/UR5Vqs9wPVI/AAAAAAAAAl0/FZup6kVgVHg/s1600/Picture+25.png Historic P/E http://3.bp.blogspot.com/-v0upgWRiW7w/UR5VpmxUiWI/AAAAAAAAAls/7AT1VrXnH9Q/s1600/Picture+24.png Link to comment Share on other sites More sharing options...
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