The capital raise is not likely enough to cause major dilution so long-term I still view it as the best bank to own. If they do raise capital it is possible that the government's CAP conversion price ($ 16.78/share) will anchor the stock. That is why I have targeted buying new shares slightly below at $ 14/share for now. Once the amount of possible shareholder dilution is more clear I may increase that price.
Assuming only minor dilution from the stress tests I still view the intrinsic value of Wells to be $45-55/share within 3 years as I said on April 8th.
Adam
This site does not provide investing recommendations as that comes down to individual circumstances. Instead, it is for generalized informational, educational, and entertainment purposes. Visitors should always do their own research and consult, as needed, with a financial adviser that's familiar with the individual circumstances before making any investment decisions. Bottom line: The opinions found here should never be considered specific individualized investment advice and never a recommendation to buy or sell anything.
Assuming only minor dilution from the stress tests I still view the intrinsic value of Wells to be $45-55/share within 3 years as I said on April 8th.
Adam
This site does not provide investing recommendations as that comes down to individual circumstances. Instead, it is for generalized informational, educational, and entertainment purposes. Visitors should always do their own research and consult, as needed, with a financial adviser that's familiar with the individual circumstances before making any investment decisions. Bottom line: The opinions found here should never be considered specific individualized investment advice and never a recommendation to buy or sell anything.
