More Sentiment

I saw this article.

In particular, Wells Fargo reported that they will absorb just $3.3 billion in charge-offs on bad loans for the quarter, and just $4.6 billion in loss provision expense; both numbers are well below most analyst estimates, and are the primary reason Wells will report earnings trumping earlier Street estimates.

CNBC’s Fast Money crew was quick to gloat over the positive results for WFC on air Wednesday, however, poking fun at FBR Capital Markets analyst Paul Miller, who had recently been a guest and recommended shorting Wells Fargo stock over the bank’s exposure to souring loans. “He [Miller] wasn’t wrong, he was 27 percent early,” cracked Jeff Macke of Minyanville.com and a regular Fast Money panelist, referring to the bounce in WFC’s shares in Wednesday trading.

As sentiment... They are awfully worked up about a stock.... What does Gordon Gekko say about stock(I can't believe I'm quoting GG) Don't get emotional about stock.

Ok.... Now to Waist my time Talking Fundimentals, since they are Useless in trading.

If the Fast Money crew had any desire to do basic analysis before running their collective mouths, they might have been able to pull up this chart — which should speak volumes about the value of skepticism here:

(JESUS, somebody was short WFC, or Long that stupid FAZ)


The conclusion I was expeced to draw is that the loan losses for WFC should be on Par with C and BAC and even JPM.

If I go to my Inbox... Or my Historical Snail Mail inbox, over the past 10 years of the Credit boom. Ask yourself? who sent you the most Solicitations? Also As you looked at those solicitaions and looked at that nebulus "Black box" full disclosure on Credit offerings.

Who sent you the most?
Of the ones that you were sent, which were the Most Unreasonable. Black boxes where if you were late with one payment you ended up with 22% interest. Who Called me 5 times a week trying to get me to take out a Second Mortgage?

Was it Wells Fargo? JPM?

There is going to be a sliding scale of "Loan Loss Provisions" Which will be based on what kind of loans banks gave out. Those that marketed the most agressivly are going to have the largest ammounts of "Dead Beats". The Credit quality of Borrowers across the Banks is not going to be Par, across the Banks.

I also want to make note of how many analystes never talk about the Equity Value, and if the current price Reflects what they see as the "good or bad news".... The question is "Is it cooked in?"

I Don't mean to be a Dick here,(Shhhh, if you don't realize I am a dick). If analysts knew what they were doing, they wouldn't be Analysts.

Just like If I knew how to Write a compleate sentace, use gramer, or Write a Proper Article, I'd be a Journalist and not a trader.