Posted on June 10th, 2008 in Mr Mortgage - News Picks of the Day!
Wells Fargo Chairman Buys $1M in Stock– Bloomberg. Michael Perry, CEO of IndyMac, tried this stunt in mid-2007 and bought $1M in stock when the price was falling below $30. Mr. Perry’s effort to support the price was followed shortly thereafter by the CFO also buying $1M worth. This was followed by a press release saying how Q3 and Q4 2007 would be great for the bank and their buying proves this. Blah blah blah. Now I am just always suspicious of $1M stock buys.
Meredith Whitney Estimates LEH 2008 Loss at $3.34/share – Bloomberg. Since Whitney had previously estimated that the bank would make a profit of $1.58/share, this is a BIG SWING! I like Whitney, but no analyst has any business trying to guess the brokers’ earnings right now. As we have seen, they release what they want to.