Chasing is the right word for this column. I have been following Wells Fargo (NYSE: WFC) for several years, I own the shares, having bought on dips and I have several accounts at the bank, but the recent chart on this stock is quite strange indeed. It was only last week I posted Chasing Value: Wells Fargo is getting weird when it was around $25 a share, but that was up from $21 a few days earlier and now it is trading about $32.50.

The stock has traded under $20 and over $36 intraday, but not the same day. How can something trade so wildly unless there is rampant speculation. Warren Buffett owns the stock and has been buying more. Ken Heebner has been buying the stock lately too.

These guys are not day traders and I'm not either. Perhaps some segment of the market just cannot give up the profits on the high end and the volatility momentum has made it a good trade for Wall Streeters. I have been patient and buying on dips although not getting the steals I could have.

Ken Heebner, who is the long-time manager of the CGM Funds, isn't afraid of risk. He often concentrates his portfolio on a few industries and is willing do dump stocks if conditions change.

Over the long run, the strategy has been a winner. But, of course, there can be some scary moments, such as this year (but who hasn't had troubles?)

So, now what is Heebner focusing on? It's the financials. Interestingly enough, up until summer, he was aggressively shorting the sector (this is according to the Wall Street Journal, which is a paid publication).

Let's face it, the banks and insurance companies are getting a flood of government money, with fairly easy terms. And, as seen with recent trouble-shooting with Citigroup (NYSE: C), it looks like the U.S. government won't let the big banks go down. In fact, Heebner has a $1 billion dollar position in Citigroup. What's more, about 40% of the CGM Focus fund is in financials.

Heebner is encouraged by the historically low levels of key metrics. For example, the top 20 U.S. banks have a price-to-tangible book value of 1.1X. This compares to the typical multiple of 2.7X.

OK, what are other financials that Heebner likes? Some include Bank of America (NYSE: BAC), Wells Fargo (NYSE: WFC) and even Banco Bradesco (NYSE: BBD).

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Streetsmart Guide to Short Selling: Techniques the Pros Use to Profit in Any Market. He is also the founder of BizEquity, a valuation website.

Last week I was reviewing investment banks for potential inclusion in one of our portfolios. I looked at numerous factors. Initially, what got me thinking about this sector was opportunity for growth versus good value of prices for the shares. At the time I concluded that Bear Stearns Cos (NYSE: BSC) was the best value with the greatest upside. It was hovering in the $153 to $156 range when I put in a limit order at $148 per share, good-till-canceled (GTC). After enough headlines about sub-prime lenders and financial sector woes that cast a giant shadow on most financial stocks, BSC reached my limit.

Last week the quality companies went down with the junk which should not happen, but it often does. Historically, this has presented me with wonderful opportunities to make a good buy and indeed I got scooped up at our $148 figure. Yesterday BSC closed at $153.83.

This morning, Brent Archer posted about Goldman Sachs, reaffirming one of Cramer's nine picks of the year. Allan Halprin also called our attention to The Savviest Stock Picker in America -- Ken Heebner of CGM Capital -- a must read. Heebner favors most of the investment banks right now. I just favor BSC. Here are the tantalizing figures for your consideration: