NEW YORK ( Real Money) -- Well, here goes Wells Fargo (WFC) - Get Report right on schedule. It is amazing how many times people react negatively to the quarter, only to have the stock have a classic " upon-further-review" status that just sets the thing right off again.
Part of that is the endless focus on net interest margin (NIM). It has become an obsession, and the funny thing is that it should be if you weren't adding loans, and if you were worried about non-performers, and if you weren't increasing your deposit base like mad.
The fact is that Wells' NIM is amazingly high, and the business Wells is doing is incredibly strong. It's a growth bank and it's a huge bank, and the share it is taking is what should be noticed. We think of banks as static; this bank is anything but.
So why does it sell off myopically each time? Because nobody knows what to do with the low rates and Wells. It is THE bank they all want to play if rates go higher -- I would argue, by the way, you should play Bank of America (BAC) - Get Report if you wanted that because it would be the real winner after four rate hikes.
The problem is when Wells reports. We don't know how good it is until we see everyone else report. And when they do we say, "Wow, Wells Fargo is a retail powerhouse that shouldn't have been allowed to be created because it is the ultimate national banker that is more fee based than we realize with a tremendous cross-sell and an amazing footprint."
That just doesn't get told until after.
Now there's a new rap against Wells -- it is getting into more risky businesses. That's another canard. Risky businesses are only bad if there are no controls. Given the standards that Wells has, does anyone think that controls are an issue?
Wells is primed to outperform again. It's had the delay. See our Actions Alerts notes for more.
Wells Fargo is ready to roll.
Editor's Note: This article was originally published at 3:30 p.m. on Real Money on April 16.
At the time of publication, Jim Cramer's charitable trust Action Alerts PLUS held no positions in stocks mentioned.