Cramer Uses Wachovia (WB) As A Call On Wells Fargo (WFC)

Over the past couple of days, Jim Cramer has been accumulating shares of Wachovia Bank (NYSE: WB) as a cheaper way to play Wells Fargo (NYSE: WFC) for his ActionAlertsPlus.com portfolio. Cramer thinks the combined Wells Fargo/Wachovia entity will produce a lot of synergies. He believes the "combined entity will have over $4.50 a share in earnings power, $5 billion in cost cuts, plenty of revenue synergies and most importantly a cleaner book as it will write down three-quarters of the bad loans when the deal closes."

Additionally, Cramer likes that the Wells Fargo and Wachovia combination will create one of the largest banks with nearly $700 billion in deposits.

Jim has bought 700 shares of Wachovia over the past two days, giving him a total of 6,000 shares of Wachovia for ActionAlertsPlus.com portfolio.

The conversion rate remains 0.1991 shares of Wells Fargo for each share of Wachovia owned.

Wachovia Corporation (Wachovia) is a financial holding company and a bank holding company.
Wells Fargo & Company is a financial holding company and a bank holding company.
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