Green probably isn’t the first thing to come to mind when Wells Fargo is mentioned, but the bank has its hands in a lot of environmentally friendly projects.
Wells Fargo has financed seven wind farms and nine solar farms, CEO John Stumpf told Cramer on Mad Money Tuesday. “These are really important projects where we can do good and do well at the same time,” he said.
The bank is also the largest corporate purchaser of renewable energy certificates, which amounts to 42% of all the energy used in Wells’ 6,000 stores. That’s like offsetting 40 million gallons of gas annually, Stumpf said.
As for WFC’s fundamentals, loan charge-offs were up big last quarter, but that was expected with the August credit crunch. Wells is among the least exposed to bad mortgages, so even though the bank missed the quarter by a couple pennies, Cramer thinks it’s in good shape. So much so that he said Wells is probably being looped in with other “bad banks” like Citigroup or Bank of America, and that’s why the stock took a hit.
This is the third housing cycle Stumpf has seen, he said, and the prices that were bid up so high because of low interest rates is unwinding now. But Wells is the only AAA-rated bank covered by Moody’s and Standard & Poor’s, Wells has money to lend and the balance sheet is strong. “So this is actually an opportunity for us,” Stumpf said.
“Every other bank that I recommended has disappointed,” Cramer said. “This is the only one that hasn’t.” He recommended Homegamers buy WFC.
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