Agreed. Trading quite high for a stock that was bought out for $1 in Citigroup stock. Am I missing something?
http://blog.al.com/spotnews/2008/09/citiwachovia_deal_leaves_exsou.html "I would say that what is left -- the retail brokerage and Evergreen -- is worth about $5 a share to $7 a share," said Robert Patten, a banking analyst with Morgan Keegan & Co.
http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=AP&date=20080930&id=8978764 "Ultimately, Keefe, Bruyette & Woods analyst Jefferson Harralson believes Wachovia's common shareholders are left with limited value. He has a "Market Perform" rating and $1 target price on the stock." "Fox-Pitt Kelton analyst Andrew Marquardt estimated that the remaining franchise is worth about $1.40 per share." "Sandler O'Neill & Partners analyst Kevin Fitzsimmons, meanwhile, gave a preliminary estimate on the value of the remaining business of between $4 and $7 per share. However, he said he has very little conviction in this estimate given the number of questions that remain unanswered. Fitzsimmons' "Hold" rating and $10 target price are under review.""
Funny... I was at a Wachovia branch last week and jokingly asked the manager... "who is going to be taking you over and when"? She said, "Oh, we're in good shape. We're not involved in those risky things..." LOL
Apparently Wachovia is refusing educational institutions who have a total of USD 9 bn on their accounts to access, withdraw their money - to pay bills, wages etc. Limit to 35% or something IIRC.