Diamonds and Dogs
Not feeling so Blue. Bluebird Bio (BLUE) is jumping 5% on strong volume as Goldman Sachs added the stock to their Conviction Buy list with a $135 price target. Impressive since the stock is only trading at $66 a share. Bluebird is only generating $13 million in sales, losing over $6 a share in earnings and yet Goldman says the company should be worth $5 billion. You got to admire this analyst stepping out on a ledge.
Wells Fargo faces more headline risk. Wells Fargo (WFC) is down for the fifth straight day after news broke last week that thousands of Wells Fargo employees allegedly created 2 million accounts in a widespread scheme to reach aggressive sales goals and earn bonuses. 5300 employees are being let go involved in this scandal. Since the news broke last week, Wells Fargo has been fined $185 million by the U.S. Attorney's Office of the Southern District of New York and Northern District of California. UBS downgraded the stock to a sell. The CEO, John Stumpf is under fire to step down while he will also testify before Senator Elizabeth Warren and other senators next week. Other than that, things are good at Wells Fargo.
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