{"id":1587,"date":"2009-10-22T10:36:03","date_gmt":"2009-10-22T15:36:03","guid":{"rendered":"http:\/\/selfinvestors.com\/tradingstocks\/?p=1587"},"modified":"2009-10-22T12:02:01","modified_gmt":"2009-10-22T17:02:01","slug":"dick-boves-wells-fargo-wfc-sell-rating-drains-any-credibility","status":"publish","type":"post","link":"https:\/\/selfinvestors.com\/tradingstocks\/banks\/dick-boves-wells-fargo-wfc-sell-rating-drains-any-credibility\/","title":{"rendered":"Dick Bove’s Wells Fargo (WFC) Sell Rating Drains Any Credibility"},"content":{"rendered":"

Whatever credibility Dick Bove of Rochdale Securities has left can now be thrown out the window.\u00a0 It won’t matter at CNBC or Fox Business though, because for some reason he’s considered a guru analyst in the financial sector.\u00a0 Following Wells Fargo’s (WFC) earnings yesterday morning, he was on CNBC with the following comments before the market opened:<\/p>\n

At the beginning of the segment he said Wells Fargo “has its loan losses under control” and that they “should be able to grow revenues by increasing loan volumes”.\u00a0 At the 1:20 mark he said Wells Fargo was one of the three financial companies that “should do well in the market today and lift all financial stocks.”\u00a0 To close out his thoughts on the financials, he called Wells Fargo a “standout”\u00a0 with those earnings numbers.<\/p>\n

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Now fast forward a few hours later to about 30 minutes before the market close yesterday.\u00a0 Bove issues a surprising Sell rating on Wells Fargo, downgrading the stock from Neutral.\u00a0 This morning he was on Fox Business explaining his Sell rating.\u00a0 Here are the highlights from his comments about Wells Fargo:<\/p>\n

– not expanding its loan book
\n– margins on loans being sold going to come down
\n– big increase in loan losses through the beginning of next yeare
\n– unsustainable gains in their hedging portfolio
\n– will take about a year to get its position back where it should be<\/p>\n