Email question about:
Wells Fargo (WFC*)

Q:        Wells Fargo is either an extremely attractive opportunity, or a bottomless pit. The stock is down huge in less than two weeks as everyone assumes it has as many problems as other banks. Does this make sense?

Jim:     Ron, I nibbled a little for ActionAlertsPlus.com, my charitable trust, to some degree, I have almost no financials… I felt like I ought to have some because they still are 11% of the S&P… this one is one of the best… there was an article out today, a piece of research saying that they had to cut the dividend… that freaked people out… plus it is a big part of the SKF… the index that people use to shoot down stocks… if Wells Fargo is in big trouble… than every other bank is in huge trouble.

Email question about:
General Question...

Q:        You often recommend that we wait for a stock to pull back before buying shares. How do you determine the price to start buying shares in a company? Is it a mathematical equation, a review of the stock’s price history, or just a best guess?

Jim:     Every since I got negative in September, where I said take 10%, take 20% off the market… and then reiterated it… Dow 10000... to get any money out that you needed… all bets were off for almost all of my recommendations… except for the ones that were recession resistant and high yield… anyone who follows the show closely as opposed to the critics of my no dome… would know that I would not be recommending a stock unless it is on yield basis… so Todd, what you have to do is start buying below 4%… that is what I have been saying… when it gets to 4 1/5%, and then 5%… then you keep buying on the way down… it is a yield percentage that I am buying on… not a stock price.

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