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Long Idea: Wells Fargo & Company (WFC)

In the search for safe investments in today’s volatile markets, investors should focus on companies that have a history of creating shareholder value, the ability to earn quality returns on capital, and an undervalued stock. This week’s Long Idea, Wells Fargo & Company (WFC) not only fits the description of a safe investment, but its shares are also greatly undervalued.
by Kyle Guske II, Senior Investment Analyst, MBA
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Danger Zone: Value Investors

Value investing is a tried and tested approach that has worked wonders for investors in the past. However, in today's world, executing this strategy can be a daunting task, given the complexity of the annual reports that companies file. Even professional investors have a tough time understanding the profitability and valuation of companies due to the lengthy and convoluted filings they receive. With stocks becoming more volatile and earnings estimates less precise, investors could be misled into thinking they're making a wise investment when, in fact, there's another side to the coin they've not seen.
by David Trainer, Founder & CEO
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Preferred Stock – Valuation Adjustment

Preferred stock is a hybrid instrument that carries no voting rights but has a senior claim on assets and cash flows to common stock. Dividends usually must be paid out to preferred stock owners before common stock owners can receive any money. In the event of liquidation, preferred shareholders also have priority.
by David Trainer, Founder & CEO