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Financials are weak, time to buy?

posted 03/01/08 08:08 AM | Viewed 361 times
Been trading in Wachovia Bank recently. At curent price dividend yield is 8%. With a combination of call writing on a monthly basis, should be able to earn almost 20% annually, which I am doing for a portion of funds desiganted for long term hold. Dip on Thursday and Friday present great buying opprtunity. Stock is close to 52 week low and insiders have picked up a boatload of shares recently. Consider ITM March 25's for a quick bounce.

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pumpkin_pie_and_whipped_cream

Member since: Feb 08
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pumpkin_pie_and_whipped_cream
Posted March 01, 2008 (11:35AM)
I've been looking at ING, actually.  They seem to have very limited subprime exposure, though they have lots of Alt-A RMBS exposure.  The don't own any subprime CDOs.  They have some limited monoline insurer exposure.  They're also in a very strong capital position and looking to make opportunistic acquirements this year.  Their buyback program is only 3/4 complete though there is no planned expansion at the moment.
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snowman

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snowman
Posted March 01, 2008 (05:59PM)

Four things have to happen first. They finish writing down the Sub-prime. The new wave of write downs on the corporate bonds comming out in April. The Bank failures that will be announced very soon. The Hedge funds that have managed to stay afloat will soon be folding the cards. Hedge funds borrow money from BANKS.

I will repeat it one last time, BUY banks in JUNE-September. Buy then we will have an idea of how the credit markets are going to do. Monolines will be BK, interest rates should rise etc.

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snowman

Member since: Mar 07
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6 Month 231.32%
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Age: 40's
Pittsford , NY UNITED STATES
snowman
Posted March 01, 2008 (06:09PM)

I will defer my wisdom to two posters on the Yahoo SPY message board named Johnny and Bigsig200. Johnny has been wrong 2 days out of the last 9 months and always was right within 1 week.

http://messages.finance.yahoo.com/ETFs_%28A_to_Z%29/ETFs_S/threadview?m=te&bn=45991&tid=30517&mid=30517&tof=9&frt=2#30517

 

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