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 .
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. High above the Alps, my gnome is hearing that Wells Fargo ( WFC - Get 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 Report), Bank of America (BAC - Get Report), Toronto-Dominion (BAC - Get Report), Bank of New York Mellon (BK - Get Report), Bank of Nova Scotia (BNS - Get Report) and Citigroup (C - Get Report).