Wachovia
New York symbol WB, is a leading provider of financial services in the United States.
WELLS FARGO & CO. $27 (New York symbol WFC; Conservative Growth Portfolio, Finance sector; Shares outstanding: 5.3 billion; Market cap: $143.1 billion; Price-to-sales ratio: 1.6; Dividend yield: 0.7%; TSINetwork Rating: Average; www.wellsfargo.com) has agreed to settle a lawsuit stemming from its 2008 purchase of troubled banking firm Wachovia Corp.
Citigroup Inc. (New York symbol C) had originally agreed to buy Wachovia …read more »
WELLS FARGO & CO. $24 (New York symbol WFC; Conservative Growth Portfolio, Finance sector; Shares outstanding: 4.7 billion; Market cap: $112.8 billion; Price-to-sales ratio: 1.8; WSSF Rating: Average) earned a record $3.2 billion in the second quarter of 2009. That’s up 80.9% from $1.8 billion a year earlier. Last January’s purchase of rival banking firm Wachovia Corp. was the main …read more »
WELLS FARGO & CO. $31 (New York symbol WFC; Conservative Growth Portfolio, Finance sector; Shares outstanding: 3.3 billion; Market cap: $102.3 billion; WSSF Rating: Average) provides a wide variety of financial services to nearly eight million customers through roughly 6,000 branches and offices in 23 states. Internationally, it operates in Canada, the Caribbean and Central America. Warren Buffett’s Berkshire Hathaway …read more »
Wells Fargo has avoided most of the big writedowns that have led to the recent bankruptcies of several major banks and brokerage firms. That’s largely to due to its stricter lending standards, which limited its exposure to subprime mortgages. The company’s focus on retail banking also provides it with a sound capital base, plus steady fee income from services such …read more »
FIRSTSERVICE CORP. $24 (Toronto symbol FSV; SI Rating: Extra Risk) (416-960-9500; www.firstservice.com; Shares outstanding: 28.8 million; Market cap: $687.4 million) operates in the rapidly growing service sector, providing services in the following areas: commercial real estate; residential property management; integrated security services; and property improvement services.
The company continues to expand profitably through acquisitions and internal growth. Both avenues still offer …read more »
WACHOVIA CORP. $48 (New York symbol WB; Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.9 billion; Market cap: $91.2 billion; WSSF Rating: Average) is cutting its exposure to housing with its recent deal to buy brokerage firm A.G. Edwards Inc. When the purchase closes later this year, it will make Wachovia the second-largest retail brokerage firm in the United States, …read more »
Today’s turmoil in mortgage lending is mainly due to the lack of demand for subprime mortgage-backed securities. That’s where smaller lenders package together and sell their riskier loans to third parties to raise cash for new loans. But well-established banks like these three can hang on to their mortgage loans for much longer periods of time. As well, their wider …read more »
TOYOTA MOTOR CORP. ADRs $124 (New York symbol TM) has sold roughly 1 million hybrid vehicles in the past 10 years. It now aims to sell 1 million hybrids annually, which will help it comply with stricter emission standards. Hybrids still account for less than 5% of Toyota’s production, but its leadership in this field gives it an advantage over …read more »
FIDELITY FOCUS FINANCIAL SERVICES FUND $25.79 (CWA Rating: Aggressive) invests mostly in financial services companies in brokerage and investment management, investment banking, life insurance, personal loans, property and casualty insurance, and savings and loans.
Fidelity Focus Financial Services Fund now holds a higher percentage of international stocks than in the past. Geographically, its holdings are allocated: the U.S., 31.4%; Japan, 16.2%; …read more »
Here are three Fidelity funds that hold much of their portfolios in one specific sector. We generally advise against investing in funds that concentrate in one economic sector. For example, a fund concentrating in financial services is particularly vulnerable to any setbacks in the sector or interest-rate rises.
However, all of these Fidelity funds stick with high-quality stocks. If you do …read more »
