Author Topic: WFC - Wells Fargo  (Read 249908 times)

Arden

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Re: WFC - Wells Fargo
« Reply #20 on: August 21, 2012, 04:50:34 AM »
Wow, thanks meiroy, that's really interesting.

My guess is when you're tasked with making the TARP warrant disappear from the market and you're 65% done, You're gonna finish your job. I feel almost like I've been given insider information :)
Sol Arden


Arden

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Re: WFC - Wells Fargo
« Reply #21 on: August 21, 2012, 05:04:25 AM »
Thinking about it some more and looking at the prices at which they bought, it is possible they have a rule- only buy when price is below what Black Scholes model suggests. Otherwise, their average price is quite remarkably low.
« Last Edit: August 21, 2012, 05:09:36 AM by Arden »
Sol Arden

Uccmal

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Re: WFC - Wells Fargo
« Reply #22 on: August 21, 2012, 05:58:29 AM »
The average price is very low.  The quote is 10.16.  I plan on holding mine indefinitely.   There must be others who are doing the same.  If they plan onbuying them all in they will have to tender at a good premium to get me to sell - at least a 30% premium. 
GARP tending toward value

Arden

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Re: WFC - Wells Fargo
« Reply #23 on: August 21, 2012, 06:03:48 AM »
If so, they will only make the offer after they've bought as much as they can, so only the truly hardcore long term holders might enjoy such an offer. I think the tender offer they make will depend on the number of warrants they manage to buy until it gets too hard and the change they have from the original 1 B$
Sol Arden

meiroy

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Re: WFC - Wells Fargo
« Reply #24 on: August 27, 2012, 08:39:31 PM »

Is it possible to short the WFC warrants? If so, where could one see the relevant data? Thanks.

berkshiremystery

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Re: WFC - Wells Fargo
« Reply #25 on: September 24, 2012, 07:58:01 AM »

Why Is Wells Fargo Warren Buffett's 2nd Biggest Holding?
Sep. 22, 2012 - SeekingAlpha.com
http://seekingalpha.com/article/882071-why-is-wells-fargo-warren-buffett-s-2nd-biggest-holding?source=yahoo

America's second-largest home lender also stands to be the most favored bank of billionaire Warren Buffett. The bank is set to be his second biggest holding in Berkshire Hathaway (BRK.A). Buffett has increased his investments in the bank, owing to the rebounding U.S. housing markets. Buffett believes that the bank, being the largest mortgage lender, will benefit from the housing markets, which we believe have bottomed. There is plenty of data to suggest that U.S. housing markets are on their way to a recovery


Earnings History

The bank has a history of surpassing its consensus earnings estimates, as shown in the table below. In the second quarter of the current year, the bank, despite posting a turnover figure that was in line with expectations, surpassed its EPS consensus estimate by 0.89%. Overall, the bank has surpassed its revenue and earnings estimates by 0.6% and 0.4%, respectively, in the past five quarters.
« Last Edit: September 24, 2012, 08:00:36 AM by berkshiremystery »

MrB

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Re: WFC - Wells Fargo
« Reply #26 on: September 27, 2012, 07:00:03 AM »
Mmmmm?

Today's filing...maybe something to understand and file away..


Filed Pursuant to Rule 424(b)(2)
File No. 333-180728


Wells Fargo & Company

 

Medium-Term Notes, Series K

Commodity Linked Securities

 
 
 
    Buffered Jump Securities

Based on the Performance of Brent Crude Oil Futures due September 25, 2015

 
 
   
    n    Linked to Brent crude oil futures
     
   
    n    Unlike ordinary debt securities, the securities do not pay interest or repay a fixed amount of principal at maturity. Instead, the securities provide for a payment at maturity that may be greater than, equal to or less than the original offering price of the securities, depending on the performance of Brent crude oil futures from the starting price to the ending price. The payment at maturity will reflect the following terms:
 
   
        n    If the settlement price of Brent crude oil futures equals the starting price or increases, you will receive the original offering price plus a return equal to the greater of (i) the contingent minimum return of 12% of the original offering price and (ii) the percentage increase in the settlement price of Brent crude oil futures from the starting price to the ending price
 
   
        n    If the settlement price of Brent crude oil futures decreases but the decrease is not more than 15%, you will be repaid the original offering price
 
   
        n    If the settlement price of Brent crude oil futures decreases by more than 15%, you will receive less than the original offering price and have 1-to-1 downside exposure to the decrease in the settlement price of Brent crude oil futures in excess of 15%
 
   
    n    Investors may lose up to 85% of the original offering price
     
   
    n    All payments on the securities are subject to the credit risk of Wells Fargo & Company
     
   
    n    No periodic interest payments
     
   
    n    An investment in the securities is not the same as an investment in Brent crude oil futures
     
   
    n    No exchange listing; designed to be held to maturity
 

Rabbitisrich

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Re: WFC - Wells Fargo
« Reply #27 on: October 02, 2012, 09:01:24 PM »
I've been wondering about these linked products as well. I looked for some big protective covenant that would protect WFC's interest, but these products seem relatively straight forward. Wachovia used to screw over small investors with linked securities that would take from principal to pay for unwinding hedges in the case of early termination.


Kraven

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Re: WFC - Wells Fargo
« Reply #28 on: October 03, 2012, 03:28:09 AM »
I've been wondering about these linked products as well. I looked for some big protective covenant that would protect WFC's interest, but these products seem relatively straight forward. Wachovia used to screw over small investors with linked securities that would take from principal to pay for unwinding hedges in the case of early termination.

There is nothing new about these linked products.  They've been doing them for well over a decade.  It wouldn't surprise me if WFC was a little late to the game on them, but they are typically very straightforward instruments.  I don't know anything about these specific ones, but on the surface there is nothing to be concerned about. 
Buy cheap and something good might happen.

Liberty

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