Insider at Wachovia (WB), the nations 4th largest bank have been busy lately buying shares in it.
Lanty L. Smith, a director at the bank, bought 100,000 shares of commons stock. In a filing with the SEC, Smith reported he bought the shares for $38.70 apiece Friday.
Donald K. Truslow, the chief risk officer and senior executive vice president bought 13,000 shares of common stock. In a filing with the SEC, Truslow reported he bought the shares Tuesday for $41.70 to $41.71 each.
John Baker, a director bought 15,000 total shares on Oct. 24th and Nov. 2nd. In a filing with the SEC the shares were bought for $44.80 and $42.70
This is a great sign for shareholders. When insiders begin snapping up shares with their own money it is only because they see a rosy picture ahead. With the banking industry in the flux it is in now, if you hold Wachovia shares there is an additional consideration. You have to assume that the write-down announcements for the bank are over.
If these insiders thought for a second that the bank would be writing down CDO assets again, one would have to wonder why they would be spending millions of their own money buying shares. Why not just wait a pick up some on the next drop? Assuming they are not fools, you must conclude that additional write-down are not forthcoming.
Financial stocks have bottomed and the quality institutions will see tremendous appreciation in the coming year. Just be patient..