Does anyone agree? IMO, I think WF stock is extremely undervalued. It should get back to around $50 by 2022. Which is more the 100 % increase from current levels. Below is a good link to the article with details
https://www.google.com/amp/s/www.forbes.com/v/s/www.forbes.com/sites/greatspeculations/2020/10/29/wells-fargo-stock-has-a-65-upside-over-the-next-1-2-years/amp/%3famp_js_v=0.1&usqp=mq331AQFKAGwASA%253D#ampf=
Holding Wells stock should disqualify you from working in financial services.
Here are the facts:
1) Wells stock traded for decades at ridiculous levels based upon false earnings from numerous corrupt schemes. It never belonged at that level.
2) Wells is too big to fail. But it is also too mismanaged to allow it to continue. Regulators will be looking to have the bank sell off businesses and cut the problem down to size.
3) Look at Merrill Lynch’s 35 year run of corruption. It is now all gone and just a minor name only brand under Bank of America. This is the best Wells future possible. Merrill Lynch was bad, but Wells is now understood to be worse.
4) please don’t hold stock in Wells unless it is gifted options. Don’t buy it in he 401 and don’t buy it in an ESOP unless you get a discount and if so buy and sell immediately, cashless exchange on same day if possible.
@1msc+17GgIMYg I don't understand why people believe this foolishness. I worked with regulators in another state prior to my dead-end here at WF. They regularly closed banks that people involved with those banks thought were safe because "they were too important to the community" or "they were too big to fail". When the time comes, talks will already be in place with JP Morgan, BNY, BOA, etc. to determine which banks take over the assets of the failed WF. Will JP take over all of WF? No, but assets (loans) and business areas will be sold off to different banks, with the requirement that customers continue to have service. There won't be a single receiver of WF assets.
To be honest if you buy the stock now, I imagine it has nowhere to go but up. The bank is too big for the regulators to allow to fail, plus they've got a decent cushion for losses due to the regulations put in place after the 2008 financial crisis That being said, it may not go back to the highs of the recent years, but it terms of stock price I imagine we're at or near the bottom.
Sorry my friend but $50 is not going to happen. We are more likely be broken up and sold off.
IMO WFC stock is a poor investment. Whenever I receive shares as part of the 401k match or RSRs I sell the immediately. History shows it’s one of the worst stock investments you can make. If you currently hold the stock then you need to evaluate the likelihood of whether it will outperform or underperform the market overall. My personal opinion is that it will not do better than the market in general. Ask yourself “am i confident in the senior management team running this bank?”
@yrd+17GgIMYg Had to do it, was thinking about holding the shares for the long haul due to 14 years tenure but overall so disheartened. I just didn’t want my money somewhere I no longer believe in.
On Wed I was down around 57% value already, the additional losses earlier this week just pushed me over the edge. Apple was an impulse move, the bell was gonna ring.
WFC - I’m completely done - going to seek other banking relationships and moving it all out, deposits, balance transfer credit, all of it. At this point I am leaning towards checking out smaller/different setups - unaffiliated credit unions or FinTech options. Just anywhere but here.
Thank god we got those 50 shares to show how much we are appreciated!
My FA had to beat the following concept in to my head. It’s not important that you get your money back in the same stock, just that you get your money back. It hurt, but I was tired of watching WFC move lower every day. I finally sold it around $25 and put it in to a different investment. I made most (not all) of my loss back in that new investment and am out of that too. And WFC has done nothing but get cheaper during that same time frame. I’m just RELIEVED to be out. I could always buy it back down here, but I don’t think I will. Could be wrong, but there’s a whole big world to invest in out there. No reason to put my money and my career in to one basket. The truth is that it could very easily be another two years before the asset cap is removed. Why tie your money up that whole time, when you could be making money in something else now.
And I don’t trust the powers that be.
@ysk+17GgIMYg. I personally don’t think that was a wise move to sell all WF at such low prices($21). If you were buying at average of $45 then you lost more then 50 percent of your investment. iMo it’s better to wait it out before rebalancing your portfolio. Also, Apple is one of the best stocks out there. But you are buying at a record high prices.
Good luck if you decide to hold or buy more. I sold all my shares yesterday and bought Apple with it. Got some of my losses from earlier in the week back today.
The opposite viewpoint to the article you linked is on Yahoo Finance October 23, Wells Fargo, Transforming from a Value Buy to a Value Trap.
Re your article, a 65% increase just gets it back up to $35ish Most of us probably own it in our 401Ks at a price of $40-$45, depending on how long you’ve worked here. After the Townhall today, I am not putting any more money in to the stock. Hoping our CEO mproves as a leader, but there are too many less risky companies to put my money in to.
Here is what I posted on an earlier thread:
It’s kind of fun to go back a year and read all the recommendations to buy or not to buy WFC stock at various prices and then all the way down. I found one from The Street on Dec 19, 2019 saying it was inching closer to a classic buy signal at 54.50. Ha! And then one from March 08, 2020 saying we shouldn’t buy at $34.20 due to too much uncertainty around the asset cap. Smart guy!
A good point being that just because a stock is way down doesn’t mean it’s going to go back up. And also just because a stock is way down doesn’t mean it won’t go lower.
I don’t know if it’s a good buy here or not. I could argue strong pros and strong cons. But for me, personally, I don’t love what I’m seeing. I lived through Wachovia falling apart seemingly overnight.
I know a lot of employees and executives, who I would have hoped were a lot smarter than me, who lost a lot of money because they had some kind of weird false hope or faith in the company. Outsiders could see it, but many on the inside just couldn’t see the forest for the trees.