Financial stocks have had a rough ride since the beginning of the year. Wells Fargo is in the core of the turbulence. The stock entered year 2009 at about $30, it reached a 12-year low of $7.80 in early March. Today (March 18, 2009) it closed at $17.22. The following chart shows the stock price has reached the lowest level in terms of P/E, P/S, P/B, and Dividend yield. IF (a very big IF) it is not for the financial crisis, we would never be able to buy the stock at this levels.
When fear and despair prevail; all headline news is negative; all value measurements became irrelevant; every sharp decline is justified by the decaying economic and business perspective and is followed by sharer declines, we found a group of Wells Fargo independent board directors bought into the company’s stock. These brave individuals are:
1. Mr. Richard McCormick, who bought 15,000 shares on March 10.
According to Well Fargo & Company website:
2. Cynthia Milligan, who bought a total of 20,000 shares in February, 2009
Here is a bio for Ms. Milligan:
3. Judith Runstad, who bought a total of 41600 shares in three transactions in January to February, 2009
Again, according to Well Fargo Company website:
4. Stephen Sanger, who bought 4,000 shares in January, 2009.
The company website states:
5. Michael Wright, who bought 42,500 share in February, 2009
Mr. Wright’s bio is no less impressive than the ones you have seen so far:
In summary, for Wells Fargo, we have five outstanding individuals: three retired CEOs of other prestigious companies; one former head of Fed Reserve Bank; and one dean of a business school, who serve as independent board directors and put up their own money to buy the company’s stock. That doesn’t sound like the company is going belly up any time soon.
Blessed are the five independent directors. May their faith and investment in the company pay off!
The trading data of the five directors are listed here:
When fear and despair prevail; all headline news is negative; all value measurements became irrelevant; every sharp decline is justified by the decaying economic and business perspective and is followed by sharer declines, we found a group of Wells Fargo independent board directors bought into the company’s stock. These brave individuals are:
1. Mr. Richard McCormick, who bought 15,000 shares on March 10.
According to Well Fargo & Company website:
Mr. McCormick, 68*, is chairman emeritus of U S WEST, Inc., a telecommunications company located in Denver, Colorado, having retired as president and CEO in 1998 and chairman in 1999. He was elected president and COO of U S West in 1986, CEO in 1990 and chairman in 1992.
2. Cynthia Milligan, who bought a total of 20,000 shares in February, 2009
Here is a bio for Ms. Milligan:
Ms. Milligan, 62*, has served as dean of the College of Business Administration at the University of Nebraska-Lincoln, located in Lincoln, Nebraska, since June 1998. Before joining the University of Nebraska, Ms. Milligan served as president of Cynthia Milligan & Associates, a consulting firm for financial institution, and before that was a senior partner of a law firm in Lincoln, Nebraska. She is the former Director of Banking and Finance for the State of Nebraska.
3. Judith Runstad, who bought a total of 41600 shares in three transactions in January to February, 2009
Again, according to Well Fargo Company website:
Ms. Runstad, 64*, is a former partner of, and has been of counsel since January 1997 to Foster Pepper PLLC, a law firm located in Seattle, Washington, practicing in the areas of real estate development and land use and environmental law for 32 years. Ms. Runstad is a former chairwoman of the San Francisco Federal Reserve Bank.
4. Stephen Sanger, who bought 4,000 shares in January, 2009.
The company website states:
Mr. Sanger, 62*, served as the chairman of General Mills, Inc., a packaged food producer and distributor located in Minneapolis, Minnesota, from May 1995 until he retired in May 2008. Mr. Sanger joined General Mills in 1974 and, progressing through a variety of positions, was named president in 1993 and CEO in 1995.
5. Michael Wright, who bought 42,500 share in February, 2009
Mr. Wright’s bio is no less impressive than the ones you have seen so far:
Mr. Wright, 70*, joined SUPERVALU INC., a food distributor and retailer located in Eden Prairie, Minnesota, in March 1977 as senior vice president, and he became president and COO in 1978, CEO in 1981, and chairman in 1982. Mr. Wright retired as CEO in June of 2001 and as chairman in June of 2002.
In summary, for Wells Fargo, we have five outstanding individuals: three retired CEOs of other prestigious companies; one former head of Fed Reserve Bank; and one dean of a business school, who serve as independent board directors and put up their own money to buy the company’s stock. That doesn’t sound like the company is going belly up any time soon.
Blessed are the five independent directors. May their faith and investment in the company pay off!
The trading data of the five directors are listed here:
| Insider | Position | Date | Trades | Shares | Trade Price ($) | Change (%) |
| MCCORMICK RICHARD D | Director | 3/10/2009 | Buy | 15000 | $10.95 | 57.26 |
| MCCORMICK RICHARD D Total | 15000 | |||||
| MILLIGAN CYNTHIA | Director | 2/18/2009 | Buy | 10000 | $13.19 | 30.55 |
| MILLIGAN CYNTHIA | Director | 2/20/2009 | Buy | 10000 | $10 | 72.2 |
| MILLIGAN CYNTHIA Total | 20000 | |||||
| RUNSTAD JUDITH M | Director | 1/29/2009 | Buy | 14000 | $19.84 | -13.21 |
| RUNSTAD JUDITH M | Director | 1/29/2009 | Buy | 17600 | $19.83 | -13.16 |
| RUNSTAD JUDITH M | Director | 2/19/2009 | Buy | 10000 | $12.50 | 37.76 |
| RUNSTAD JUDITH M Total | 41600 | |||||
| SANGER STEPHEN W | Director | 1/29/2009 | Buy | 2000 | $19.90 | -13.47 |
| SANGER STEPHEN W | Director | 1/29/2009 | Buy | 2000 | $19.90 | -13.47 |
| SANGER STEPHEN W Total | 4000 | |||||
| WRIGHT MICHAEL W | Director | 2/20/2009 | Buy | 22500 | $10.81 | 59.3 |
| WRIGHT MICHAEL W | Director | 2/20/2009 | Buy | 20000 | $10.82 | 59.15 |
| WRIGHT MICHAEL W Total | 42500 | |||||
| Grand Total | 123100 | |||||
