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Long Play Updates

Wells Fargo - WFC - close: 37.53 change: +4.28 stop: 32.95

Company Description:
Wells Fargo & Company is a diversified financial services company with $609 billion in assets, providing banking, insurance, investments, mortgage and consumer finance through almost 6,000 stores and the internet (wellsfargo.com) across North America and elsewhere internationally. Wells Fargo Bank, N.A. is the only bank in the U.S., and one of only two banks worldwide, to have the highest possible credit rating from both Moodys Investors Service, "Aaa," and Standard & Poor's Ratings Services, "AAA." (source: company press release or website)

Why We Like It:
WFC is one of the few banks that are likely to come out of this credit crisis a lot stronger and better positioned than before. Shares could see a lot of buying pressure once congress approves a rescue plan or the government changes some of the accounting rules. The stock and sector remains a very volatile group so this play may not be for the weak of stomach. Stop loss placement remains a challenge and we're going to go with a wide stop loss to give WFC room to move. Our first target is the $42.50 mark and suggest readers sell 50% to 75% of their position there. Our secondary target is $47.50.

Picked on September 30 at $ 37.53
Change since picked: + 0.00
Earnings Date 10/16/08 (unconfirmed)
Average Daily Volume = 54.5 million
 

Short Play Updates

None
 

Closed Long Plays

Wal-Mart Stores - WMT - cls: 59.89 change: +1.44 stop: 57.99

You could easily argue that our stop was too tight but when we added WMT to the play list last Thursday we didn't want to take a lot of risk. Shares dipped to $57.74 intraday before bouncing back into the green. Our stop loss was hit at $57.99. We would consider new bullish positions on WMT above $61.00.

Picked on September 25 at $60.12 /stopped out 57.99
Change since picked: - 0.23
Earnings Date 11/13/08 (unconfirmed)
Average Daily Volume: 21.8 million
 

Closed Short Plays

None
 

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