Thursday, April 9, 2009

More monster madness

Nothing convinces quite like big numbers. That's why I took my new cash (from the LVS 'tie') and added more shares of WFC in afterhours at 19.30. The stock dipped to 17.42 during the morning due to profit-taking, which happens when a stock is up 25-30%.

With a little freed-up cash, WFC is a solid move. Not as risky as BAC, which already ran 37% today without substantial news. Come Monday, the hedge and mutual funds might start backing up their trucks now that they have real numbers from WFC to work with. Sure it would've been nice to add more at 17.42, but 19.30 (and my earlier purchase at 18.93) will be in the rear-view mirror sooner rather than much later.

Citigroup closed at 3.04. Nice push over 3.00 in the final hour or so. I didn't sell a share. So, why not diversify, or at least venture into another financial? Google reports next week and Apple will likely be hot going into earnings. VM Ware is tempting, too. But the financials have tail winds: 1. New York Times report today was bullish on first-quarter profits, 2. Wells Fargo pre-announced that earnings will be $.55 per share (exceeding expectations of $.26), 3. Goldman Sachs leads off the financials' earnings reports on Tuesday. (That's Ricky Henderson in his prime stepping to the plate with the sacks filled.)

All will be fresh and tasty food for thought when Monday morning arrives.

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