This company is worth about 30 billion at these levels. You're right about it being a little expensive at > 330. But your 30%, where do you derive that number from? I agree that it spiked too high on merger mania, but 30% seems a little excessive. I think you have to give the market a little more credit than that. What is magical about the number "328"? Is it a triple bottom? If so, then I would agree that it's a number to watch. After that, I see 290 as a key resistance level also. After that we've got 260, if that gives, 240. I could see 240 as probable, b/c it's been close to there before, but I have a hard time picturing it going below 240 this year. Also, because it busted through to 350, I'm not certain, how it's going to behave if it blows upward past 340.
I think we just have to wait to see how quickly the merger mania dissipates to see the fair value of a bank with Wells Fargo's economy.
Also, we have to wait how to see how much J.P. Morgan fared with the Asian debacle, in their next earnings report. Also, the U.S. economy looks to be still chugging along in light of Asian's problems. Another inflation scare will definitely knock some stuffing out of WFC. |
