Washington Mutual stock (WM)..
06-19-2008 | 03:05 AM
#1
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Suzuka Master
Joined: Aug 2001
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From: Pacific NW/Federal Way
Washington Mutual stock (WM)..
so, WM is at rock bottom. What I want to know from anyone that is great with tracking stocks is this. Is WM in danger of going belly up? I am thinking of dumping $10k and letting it ride. It is a win, so long as WM does not file bankruptcy. I am thinking of buying and just forgetting about it (ie keeping it long term as in 10 years).
Advice / comments please.
.
Advice / comments please.
.
06-19-2008 | 10:45 AM
#2
Instructor
Joined: Oct 2006
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Originally Posted by Eggplant-EX
so, WM is at rock bottom. What I want to know from anyone that is great with tracking stocks is this. Is WM in danger of going belly up? I am thinking of dumping $10k and letting it ride. It is a win, so long as WM does not file bankruptcy. I am thinking of buying and just forgetting about it (ie keeping it long term as in 10 years).
Advice / comments please.
.
Advice / comments please.
.
06-19-2008 | 10:59 AM
#3
Thread Starter
Suzuka Master
Joined: Aug 2001
Posts: 7,305
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From: Pacific NW/Federal Way
I guess my real question for now is how can I research the strength of a Company as far as not going down the drain.
My guess is WM will either gradually come back up some (5-10 years) or be bought.
My guess is WM will either gradually come back up some (5-10 years) or be bought.
06-19-2008 | 11:00 AM
#4
goldeneye style
Joined: Jun 2003
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WM is a clusterfuck. they are the definition of risk right now.
if you absolutely *have* to play a financial, go with a more conservative one like USB. or better yet, get out of america as a whole and go with a brazilian bank since they are a net world creditor now and have a strong currency. ITU BBD UBB
edit: in terms of researching the company, you'd have to dig through all their quarterly earnings reports/conference calls to see what kind of assets they have and the risk associated with them. finding out what % is subprime, what % is prime, whether the majority of their loans are concentrated in cali/florida etc. lots to look into, almost not worth it. and, even then, the street may still sell off this name even if you think it will be "ok." trade the perception not the reality because otherwise you'll get trampled as a 'small' retail investor ya know?
if you absolutely *have* to play a financial, go with a more conservative one like USB. or better yet, get out of america as a whole and go with a brazilian bank since they are a net world creditor now and have a strong currency. ITU BBD UBB
edit: in terms of researching the company, you'd have to dig through all their quarterly earnings reports/conference calls to see what kind of assets they have and the risk associated with them. finding out what % is subprime, what % is prime, whether the majority of their loans are concentrated in cali/florida etc. lots to look into, almost not worth it. and, even then, the street may still sell off this name even if you think it will be "ok." trade the perception not the reality because otherwise you'll get trampled as a 'small' retail investor ya know?
Last edited by moonraker; 06-19-2008 at 11:03 AM.
06-19-2008 | 05:00 PM
#7
Making it Happen
Joined: Mar 2007
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Do Etrade. They aren't going anywhere and still priced basically at near bankruptcy levels. Have plenty of Reserves for their estimated write downs and metrics look great. This will be a $10-$15 stock in 2-3 years if its not bought out at $8-$10 before then. Currently trading at $3.70...I have $10k tied in it right now, will probably add.
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06-27-2008 | 06:56 PM
#12
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Suzuka Master
Joined: Aug 2001
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From: Pacific NW/Federal Way
am gonna see what the market does next week but I think I may just jump in with WM. No pain, no gain. You know, even with a 10k investment, if you speculate too cautiously, yo may gain 1k on the deal. I am looking at at least doubling or tripling my money on this deal. Yup, I could lose too but I think once things stabilize, they will be bought over or land on their feet.
06-27-2008 | 10:56 PM
#13
Racer
Joined: Sep 2007
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From: Witness Protection Program Somewhere, USA
Originally Posted by Eggplant-EX
am gonna see what the market does next week but I think I may just jump in with WM. No pain, no gain. You know, even with a 10k investment, if you speculate too cautiously, yo may gain 1k on the deal. I am looking at at least doubling or tripling my money on this deal. Yup, I could lose too but I think once things stabilize, they will be bought over or land on their feet.
06-28-2008 | 01:33 PM
#14
goldeneye style
Joined: Jun 2003
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Originally Posted by Eggplant-EX
am gonna see what the market does next week but I think I may just jump in with WM. No pain, no gain. You know, even with a 10k investment, if you speculate too cautiously, yo may gain 1k on the deal. I am looking at at least doubling or tripling my money on this deal. Yup, I could lose too but I think once things stabilize, they will be bought over or land on their feet.
07-11-2008 | 03:39 PM
#15
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Originally Posted by DAROCK
I would seriously ask myself if WM is at rock bottom. The distance from 6 to 3 can be covered rather quickly these days. If you think the financial sector is at rock bottom, I much rather go for the XLF ETF rather than one particular stock.
Almost getting there...
07-14-2008 | 06:33 PM
#18
The sizzle in the Steak
Joined: Nov 2001
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From: Southern California
WaMu Says It's `Well Capitalized' After Share Slump
WaMu Says It's `Well Capitalized' After Share Slump (Update1)
July 14 (Bloomberg) -- Washington Mutual Inc., after dropping the most since its initial public offering in 1983, said it is ``well capitalized'' with more than $40 billion in liquidity and $150 billion in retail deposits.
The company's tangible equity to tangible assets ratio is 7.8 percent as of June 30, Seattle-based Washington Mutual said in a Business Wire statement after the close of regular trading. Details will be provided on its July 22 earnings call, the company said.
Washington Mutual led a slide in home lenders after IndyMac Bancorp Inc. was taken over last week in the second-biggest seizure of a financial company by U.S. regulators. Lehman Brothers Holdings Inc. predicted today that Washington Mutual's cumulative losses this year will reach $26 billion as the mortgage crisis worsens.
Washington Mutual rose 10 percent to $3.54 in extended trading after tumbling 35 percent at 4 p.m. on the New York Stock Exchange. The shares have lost 76 percent of their value this year, the second-biggest decline in the 24-member KBW Bank Index. National City Corp. has dropped 77 percent.
July 14 (Bloomberg) -- Washington Mutual Inc., after dropping the most since its initial public offering in 1983, said it is ``well capitalized'' with more than $40 billion in liquidity and $150 billion in retail deposits.
The company's tangible equity to tangible assets ratio is 7.8 percent as of June 30, Seattle-based Washington Mutual said in a Business Wire statement after the close of regular trading. Details will be provided on its July 22 earnings call, the company said.
Washington Mutual led a slide in home lenders after IndyMac Bancorp Inc. was taken over last week in the second-biggest seizure of a financial company by U.S. regulators. Lehman Brothers Holdings Inc. predicted today that Washington Mutual's cumulative losses this year will reach $26 billion as the mortgage crisis worsens.
Washington Mutual rose 10 percent to $3.54 in extended trading after tumbling 35 percent at 4 p.m. on the New York Stock Exchange. The shares have lost 76 percent of their value this year, the second-biggest decline in the 24-member KBW Bank Index. National City Corp. has dropped 77 percent.
07-15-2008 | 01:23 AM
#19
Making it Happen
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hmm Etrades sell of 125,000 accounts from Canada to Scotiabank was interesting, for $442 million in cash. That is a 1/3 of their current market cap and a little slice of their overall business. Of course liabilities must be included which arent known yet, but definitely interesting. Loading up some more Etrade in the low $2's
07-15-2008 | 08:53 AM
#20
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Originally Posted by Renegade
hmm Etrades sell of 125,000 accounts from Canada to Scotiabank was interesting, for $442 million in cash. That is a 1/3 of their current market cap and a little slice of their overall business. Of course liabilities must be included which arent known yet, but definitely interesting. Loading up some more Etrade in the low $2's
I would stay away from it for now if I were you.
07-15-2008 | 05:18 PM
#21
The sizzle in the Steak
Joined: Nov 2001
Posts: 71,436
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From: Southern California
Originally Posted by Renegade
hmm Etrades sell of 125,000 accounts from Canada to Scotiabank was interesting, for $442 million in cash. That is a 1/3 of their current market cap and a little slice of their overall business. Of course liabilities must be included which arent known yet, but definitely interesting. Loading up some more Etrade in the low $2's
OUCH!!!!
07-15-2008 | 09:57 PM
#22
Making it Happen
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Originally Posted by Moog-Type-S
You bought at around $3.70 and now it's trading in the low $2's ?!?!?!?
OUCH!!!!
OUCH!!!!
07-15-2008 | 11:38 PM
#23
goldeneye style
Joined: Jun 2003
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Originally Posted by Renegade
Well the stock is at $2.50 and obviously it doesn't feel good, but better than investing in these other banks that have crashed even harder. I'm not worried BTW, I said this is a long term investment.
only financial I touch with a 10 foot pole is MA. stop out below 235 due to its long term trend line (1 yr chart) and call it good.
07-15-2008 | 11:52 PM
#24
Making it Happen
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Originally Posted by moonraker
why even play financials at all? why be a hero? play what's working, avoid what's not. short financials if you can (risky right now though as we approach short-term bottom). been making a killing shorting COF on the pops.
only financial I touch with a 10 foot pole is MA. stop out below 235 due to its long term trend line (1 yr chart) and call it good.
only financial I touch with a 10 foot pole is MA. stop out below 235 due to its long term trend line (1 yr chart) and call it good.
I've also made a killing off of trading and shorting PDO
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