Banking, finance, and taxes

Bove Dumps Wells Fargo (WFC)

Dick Bove of Rochdale Securities may have been responsible for today’s sell-off as many banking stocks fell late in the day.  Bove has downgraded Wells Fargo & Co. (NYSE: WFC) to a SELL rating after earnings today.  As far as…

By Douglas A. McIntyre
Published October 21, 2009, 3:54pm ET · 1 min read

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Dick Bove of Rochdale Securities may have been responsible for today’s sell-off as many banking stocks fell late in the day.  Bove has downgraded Wells Fargo & Co. (NYSE: WFC) to a SELL rating after earnings today.  As far as how this compares, Bove already had a cautious HOLD rating on the stock.   The downgrade is based on the belief that what we saw on bottom-line results this morning is unsustainable.  This is after the firm had wider credit losses and Wells Fargo said the credit metrics would not improve until 2010.  As we noted this morning, Wells Fargo shares had risen roughly 25% since the June 30 close and had soared 200% since the March 9 close.

At some point the markets will finally demand real earnings improvements across the board in order to keep rewarding stocks.

JON C. OGG
OCTOBER 21, 2009

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Douglas A. McIntyre

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

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A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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