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No tender offer price. And they withdrew the offer.
One more point on this subject of the mini-tender. At first I was thinking it was from Lehman estate. But actually it was probably from another outside investor trying to scoop up shares at under the 5% threshold, and avoid SEC compliance. Just me speculating.
I spoke to my broker about the tender offer, and most importantly the offer has been rescinded. So we weren't able to determine what the offer had been.
But I also learned that even if it was still valid that in the end, besides tying up your shares for an undetermined amount of time, they may only take one or two shares at the end of the day. Stay away from them, especially regarding Lehman shares, since they are in bankruptcy you don't want to give them control over your shares.
The only interesting part that may have some sort of bearing on all of this is: the tender was scheduled to expire in June of 2010. Not sure what that time frame really means, other than what we already know, this is a waiting game for all of the assets to be settled up.
Best to you all.
Alvin
Yes, a mini tender is less than 5% of outstanding shares.
Here's a link to the sec with more info.
http://www.sec.gov/investor/pubs/minitend.htm
I got the same email from Scottrade after I purchased some shares yesterday. I haven't called my broker yet, but would guess it's from Lehman offering to buy my shares at probably even less than I could sell them in the market. Also, I did read the link that was attached, and since I'm sure it is a "mini" tender, that it would lock up the shares, and probably not settle until the very end of the whole bankruptcy process. Just speculation as I haven't checked it out yet.
Not quite right on no taxes for cancelled share, all gains will be taxed sooner or later. (unless they are in a Roth IRA!)
However, you are on the right track. Anyone who sold short when the stock was at $8 or $10 or at whatever the price point has made a profit, but hasn't locked in the profit if still short. The earlier poster is also correct, the larger the profit, the less our current price swings affect their bottom line. Everyone will have to report their gains from selling short, but not until they close out the position, and canelled shares would have the same effect as buying to close out the position, they have maximum gain no remaining value.
As we are getting late in the year, some may want to wait for another tax year, which may be worth much more than a few cents a share. Also, there may be a few in the "stupid" camp who may not realize they have further action to take if the company was bought out and filed bankruptcy.
Either way, we all benefit by them waiting, it will only drive the action (and that may be part of the past two days activity).
Also, for those who qualify, setting up a ROTH IRA for our current investment in WAMU would be a great move, as you wouldn't have to pay taxes on any of our coming gains. I have half of my holdings invested in the ROTH - I get a double win when this goes (a huge gain & nothing to Uncle Sam). Of course I can't use money in the Roth to buy my dream house right now - but the future retirement will be great! Thus the other half of my investment.
I'm ready!
I like the sound of that, since they just filled my order this morning. Still no offer on the board, so had to buy through my broker, but I don't mind paying a couple extra bucks for something like this!
Is this stock usually low or no volume stock? It appears to have more than 4500 shares traded, which is more than the average.
I'm all about hoping this run is because something is imminent for this weekend!
However, if there was a real leak, and settlement was going to be this weekend, there would be even larger volume and it would be all classes. Even though I believe what some are saying to be true, that commons have the most potential, there are plenty of investors, especially institutional that would be buying in all classes.
I hope I'm wrong, but enjoy the ride for the moment, and maybe we push through the .12 resistence point and form a higher base as we move closer to settlement!
GO WAMU!!!!!
As a NW citizen, I've been sharing with as many of my friends who will invest for this very reason. This region lost a real core business, and we were robbed.
I hate seeing the hole in downtown. I hate seeing the constant flood of commercials about Chase, and they have billboards all over town. However, if there are a bunch of us who are buying shares, and getting in line for a payout from JPM, then it won't be quite as bad. It is at least a consolation.
My personal hope is that WMI gets paid, and gets back into the banking business. That way we win double around here!
GO WAMU!!!!
Read the article. It was Chase that sold the house. They called it WAMU because, (in their words) "yes, we know WaMu is now Chase, but we're in denial."
I love that people are still in denial. However, I can't help but think it might be more of the media bias towards protecting Chase, since they screwed up if they sold someone's house that wasn't for sale.
I believe that we are close to a settlement. I believe that one possibility is that WMI will receive a cash settlement allowing it to emerge from bankruptcy, and trade under a new symbol, WMI. I don't believe that this would result in our shares being canceled, just re-branded. See prior posts regarding likelihood of shares being canceled, but if WMI has A>L, then equity would stay intact.
I believe that one reason for this is that JPM doesn't want to compete directly with the WAMU brand, thus that is one possibility to terms of a settlement. Just my opinion, and reading between the lines.
In Washington where I live, the old WAMU signs are only covered by a vinyl chasing logo hanging over them. Nothing is final yet, who knows what direction this will take.
Check out the stock symbol, WMI, it was formally used by a waste management company. It has recently become available, and I know some that are taking this as a sign that WMI is preparing to emerge from Bankruptcy ready to do business again, and trade under the sybol, WMI. In fact, Scottrade (where I trade) has put news of the waste management under the WAMUQ symbol (if I didn't know the former piece of information I would find this odd), maybe very close to something being announced, if Washington Mutual is preparing to trade under a newly organized symbol, and the trading houses know about it!
I think we are closer than we realize!!
It's my understanding that they won't complete the takeover until the individual pieces have been settled. In other wards, what did they exactly buy. So maybe this weekend is what we have been waiting for, SETTLEMENT!
I like the part that says:
"Because WMB’s assets were worth significantly more than its deposit liabilities, selling WMB for more than those liabilities was neither difficult nor laudable. Indeed, it suggests a motive for the FDIC’s breach."
Go Team! Let's beat them down in DC court as well!!
I like the idea, and just tried it, but my account won't let me, as it is "too far from current price". We'll get there!
While the Seattle times does have a couple of small items in today's column's, they have them buried in small print under the Business/Technology heading. I posted a comment last night and thought it had been deleted when I had trouble finding it again this morning, and I knew it was there.
The press is still not giving it much exposure. The Seattle times didn't even have any of there own editors write a piece, just a blurb from an AP writer, and the Bloomberg report.
Oh well, I guess it's better than nothing. The real news is going to hit soon, and then the press can jump all over it, and JPM will be heading South. Oh wait, if it is stock settlement, we don't want them to head South. :)
Last time I looked, they still owned approximately 13% of the outstanding WMI shares.
Just to set the record straight. LT cap gains rate is currently 15%. While the Obama administration has mentioned the possibility of raising, nothing is currently in the works. Also, the top personal income tax bracket for 2008 was 35%. (I couldn't find the 2009 rate schedule, it might be heading up to 39% - or that may be speculation).
If the stocks are converted, that certainly leaves room for many to hold onto the stock, and obtain LT cap gains, and push the gains out into next year before recognizing. Also, you can spread the gains out over several years if you chose. While holding JPM stock may not be fun to see, I believe that in the long term (especially receiving preferential treatment from government), there is good value, and may even be a very good investment move.
Thanks!
I can't wait to see WaMu raise from the ashes! As an investor I'd love a settlement. As a Seattle native, I'd love vindication, and to see WaMu return to prominence in the banking sector.
This looks like a great group, gathering those of us holding WaMu stocks and looking to gain a voice in the proceedings!
I hate seeing Chase on the old WAMU banks and now its also going to be on the old WAMU tower. I say let's picket them, and get people to leave Chase now that it's not WAMU.