Investors who think shares of Wells Fargo will move meaningfully higher over the next year are 'sadly mistaken,' says Joule Financial's Quint Tatro.
div > div.group > p:first-child"> The stock caught Wall Street's attention Thursday following the company's announcement that CEO Tim Sloan was retiring effective immediately. Shares initially surged on the news in after-hours trading before reversing and shedding over 1.5 percent in Friday's session.
"If you want to own a stock like this for the dividend, I think that's fine, but if you're looking for any sort of capital appreciation or upward bias over the next year or so, I think you're going to be sadly mistaken. It's a classic value trap," Tatro said Friday on CNBC's "Trading Nation." "The problem is, obviously, they have a major public issue. They lost all trust," he said."With Tim Sloan gone, I think that's a positive, but they've got to bring somebody in who's going to innovate. Fifty percent of the business is community banking. That's being disrupted before our eyes. About 20 percent is wealth management; also being disrupted.
"If you look at ... the map of where we've been post-2009, it's traced a very nice parallel channel here," Gordon said in the same"Trading Nation" interview."We've not quite broken that uptrend that's been in play for nine years now."
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