It is a well engineered, government supported manipulation that Well Fargo , unfortunately, reported 0.55, a fake number, still 10 cents below expectation.
But the FASB rule change allows them to report it like this. They can state a false net income number, as long as they disclose the writeoffs in brackets down below.
The stock is under tremendous distribution since the open, despite the fact that this is a pre-holiday trading day.
WFC, considering a PE ratio of 16 which is over the top given the current conditions, is worth only $8 today. However the market doesn't only price today's conditions but 6+ months future.
So WFC today is worth $2-$3 like all other major banks you know of.
Here is the thing you should be careful. Conventional wisdom today changed. Masses now think that they will get the same reaction after all other bank earnings. There is no free lunch in this business. If the market unloads WFC after the news, which is the current case, this mind-set will be a trap to the broke-house. Because these banks may not see these prices for the rest of their business lifes.
These are not my words
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