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During early morning trading yesterday, Doug Kass got a tip from his mysterious "gnome" in Switzerland that Wells Fargo would be the first money center bank to raise some capital after the stress test results were released, prompting Doug to short the stock. As is now widely known, after yesterday's close, Wells Fargo announced a $7.5 billion secondary offering.

If you had followed Doug on this trade, you could've made some money. If Wells Fargo shareholders just took his gnome's word on this one, at the very least, they could have saved a bundle. And in case you are interested, after the dramatic drop in share price, Doug has now flipped to the long side on Wells Fargo.These are the kind of calls that you are missing if you're not on

RealMoney Silver


Doug Kass

Will WFC Be the First to Raise Capital?

5/7/2009 10:16 AM EDT

This blog post originally appeared on

RealMoney Silver

on May 7 at 10:16 a.m. EDT.

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High above the Alps, my gnome is hearing that

Wells Fargo

(WFC) - Get Wells Fargo & Company Report

will be the first major bank to raise capital after the stress test results are announced today.

Doug Kass is the author of The Edge, a blog on

RealMoney Silver

that features real-time shorting opportunities on the market.

Know what you own: Other money center banks include JPMorgan Chase (JPM) - Get JPMorgan Chase & Co. Report, Bank of America (BAC) - Get Bank of America Corp Report, Toronto-Dominion (BAC) - Get Bank of America Corp Report, Bank of New York Mellon (BK) - Get Bank of New York Mellon Corporation Report, Bank of Nova Scotia (BNS) - Get Bank of Nova Scotia Report and Citigroup (C) - Get Citigroup Inc. Report.

At the time of publication, Kass and/or his funds were long Wells Fargo, although holdings can change at any time.

Doug Kass is founder and president of Seabreeze Partners Management, Inc., and the general partner and investment manager of Seabreeze Partners Short LP and Seabreeze Partners Long/Short LP.