What do you guys think, is Wells Fargo stock a good buy right now around $24 per share? It was in the mid $60’s a few years ago. Right now it’s trading at around 20 percent cheaper then book value. I only have 401k plan with Wells Fargo shares. Should I rebalance from other funds to Wells Fargo now, since other funds are about the same Amount as pre COVID 19 and Wells Fargo is down around 60 percent. Do you think it makes sense to add to WF shares from other funds now? IMO the stock might go up to what it was a few years ago around 2022. Also, when the asset cap is lifted and when WF will be as efficient as other banks and the dividend goes back to what it was before, I think it’s a good investment long term on the cheap right now. Thoughts?
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If you are a Wells employee, I would be a hard no. Seriously. Past performance is no guarantee of future results. I know a lot of supposedly intelligent people who bought Wachovia in 2008 all the way down. Stock fell from $38 in January to $8 in July -many insiders bought stock at $8- and it was trading below $1 by October. And why put so many of your eggs in one underperforming basket? Meaning your job and your investment funds and your “profit-sharing” of WFC stock they deposit in your 401K. Fool me once, shame on you. Fool me twice, shame on me. Hell to the no.
The reason I would not buy BAC and JPM is because they are trading at above the book value and the forward PE is much higher then WF. WF is down more then 60 percent from last year. Where as JPM and BAC is only down 20%. There is not much difference between all the 6 to 8 biggest banks. The only Difference is that WF was caught doing wrong things and we had to be the skapegoat for all the bed things happening in banking. It will take a few years for the image to improve but imo the stock will at least triple by 2024 from where it is today.
@1csx How can you be so sure that the "smart people" aren't going to buy at 8 dollars this time around as well? Why not just buy BAC or JPM who don't have all the baggage WFC has?
It’s all a matter of knowing when the bottom is, that’s the best entry point. Back in 2009 the stock went down to around $8. Smart people bought it at $8 and sold in the $50s and $60s. That’s profit of around 700 %. I think we are close to a bottom in WF. The efficiency will improve after all these layoffs and when the asset cap is lifted and dividend re instated, plus vaccine is proven to work for COVID the stock will probably go back to 2018 highs. Also, all the provisions that the bank is taking right now might not need and they will improve NII in future quarters which will raise the price of WF IMO
WFC = Who F-ing Cares
My answer is : no. Give it more time to see how it shakes out. Many other better-run banks out there with proven management teams.
Is someone seriously asking for investment advice here?
Here?!!!!
No, no they are not serious.
But trolls' gotta' troll I guess.
This is almost, almost as bad as the folks who were asking medical questions about the pandemic here a few months ago.
Yes, you should put your entire life savings into it. Go big or go home, as they say. I mean, if you come to a layoff board to ask about financial investments, you're just f—ing stupid anyway. So, why not?
Knock yourself out, troll.
yep. just a troll.
Troll without a cause.
Move on...nothing to see here.