Drinking & Toking (soon I can write Scripts, YEAH!!!!!!)
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Or those Russell shares had to come from somewhere.
Yep, this doesn't feel right. I'm not feeling good about this.
We're at the beginning of a slow climb to $4/sh. The realization of a multi-billion M&A which will utilize all $6 billion NOLs has created the ability to "fully" price in its value into WMIH.
The prospect of a multi-billion dollar deal suggests far more value than $2.30/share. Even if consummation likelihood is only 90%, such a deal almost assures complete NOLs utilization.
Folks, light is visible on the horizon.
Seems there are at least a few buyers with expectations of ???? happening soon.
JUST SAY NO to Bluestem!
I DO NOT LIKE
Endless non-action sux!!!!!!!!!
I am not telling where I lean on any matter. Merely jumping on a certain train of thought. Don't anyone come at me saying I believe this or that, I won't have it. I'm playing along, so let's leave it at that.
For argument's sake: WMIH makes a cash purchase of ACAS, via taking on debt or becoming a hedge fund, whatever... WMIH could see it's then, 500 million plus shares (or 0.5B+/3.5B) appreciate to $8-12, buoyed by NOLs.
Let's say there are Assets coming back to the WMILT, and let's say it is about $30B (not saying I believe anything, just saying). Perhaps at split of one-third cash and two-thirds misc. assets. Considering WMIH would get 2.5% ($750 M), meaning an additional share price boost of $1.5 ($2, whatever). Now the stock could go up to $10-14.
Then with the remaining $29.xxB going to WMILT interest holders. $9.xxB cash distribution and then with WMIH having a crack at a share exchange for assets, leaving 5% owners intact, preserving NOLs. Which 'could' work out to be roughly $20B/ WMIH shares(@ $10-14 per) would mean issuing 1.4-2.0 billion new shares.
Which in turn, those assets' value would boost the share price a bit more, due to the NOLs could be used a bit faster, say another buck a share.
In this scenario (theoretically), could make your shares now held be worth as much as $11-15.
Double Super Secret DD
Yes, millions of dollars could have been spent; an explanation is warranted and necessary.
This disappointment leads me to believe WMIH's first merger won't happen until at least January.
Everything is in place to initiate an acquisition. Just like I posted earlier, it would take six months for the new CEO to establish himself in order to move forward.
If a public corporation wants protection in US Bankruptcy Court, they open their records to the public.
How so?
As I stated in post #433407, those assets were sold in the PA&A, the POR transferred WMI's rights. However, the precedence set by Walwrath's ruling on the $4 billion deposit was in WMI's favor, which meant FDIC & JPM didn't have a case to stand on with everything else ($20+ of WMI assets, which were also 'wrongly' in dispute, and why JPM & FDIC had sued). ALL of this allowed the debtor to accept 'immediate' payment for bonds (along with Congress's new carry-back law) and 'quick' exit from BK.
That said, the POR did not supersede the PA&A, meaning FDIC must continue with a complete accounting of what JPM got or else the are breaking the law.
***
It comes down to did FDIC protect itself from liability in writing the PAA (leap of faith) or is the FDIC a super large group of morons (leap of cynicism).
Since some people are quite fond of Occam's Razor, let's do that, and say FDIC is not inherently evil.
This was settled more than 5 years ago...
http://www.kccllc.net/wamu/document/0812229100507000000000007
Page 4, #12
"Susman" Godfrey L.L.P is in no way being paid a "commission".
Six years of certain people talking down the market had built up a lot of anxiety. Creating millions of rubes/suckers.
I'm holding tight here and elsewhere.
I feel pretty good about 'us' and the market in general. I don't feel the least bit worried at this moment.
I many of you have stated your fears, but I'm just not feeling it.
Good bargain hunting to all!!!!
The assets appear to have been 'transferred', because they were already sold in the PAA. Though they shouldn't have been, because they were titled to WMI (some 20-something billion worth, hence the counter-suits by JPM & FDIC). FDIC wrongly or in err transferred everything, due to haste, from failing/having not fully reviewed all records prior to sale.
Historical precedence clearly sided with the debtors (most of us saw this bear out with many a lawsuit lost by FDIC, some pre- some post-GSA; and very much including the ruling on the $4billion deposit). The GSA was devised to 'quickly' exit BK while providing full payment to bondholders, while 'conveniently' maintaining absolute control. An amazing turn of events for there be enough money to fully pay a company's bonds off in a BK (as viewed from a historical precedent).
Which sets off no red flags to anyone, to whom it matters (no one cares about shareholders in a BK, because the real world consensus is screw them for running their company into the ground, historical precedence and all) the exception is the shareholders(some rightfully upset, most not; historical precedence).
Visa, Wind farm, tax sharing,... a cash value for the sale, which now seemed necessary to advance the GSA to fully cover juniors and getting into the H's where "million dollar holders" were comprised of the major players (AAOC), not the case of the juniors. None of the GSA negotiators were going to screw over one and another (there's probably a historical precedent handshake agreement among...you know).
Congress probably screwed up AAOC's plans by adding carrybacks, where those partners had senior bonds, but the juniors were not as 'equitably' distributed.
It comes down to did FDIC protect itself from liability in writing the PAA (leap of faith) or is the FDIC a super large group of morons (leap of cynicism).
Since some people are quite fond of Occam's Razor, let's do that, and say FDIC is not inherently evil.
I'll spare you from Möbius strip reasoning. Let's chalk it up to Poe's Law.
Wait, what?
Is this on the level? Isn't this contrary to what you have previously posted.
Exactly what I was talking about yesterday. If only Lex wasn't so impatient, here today are required filings.
Are you being deliberately obtuse? WMI Trust files with the SEC. Have a look at the Trust's KCC website, they're all there:
http://www.wmitrust.com/wmitrust/document/list/2921
The WMI Trust, are subject to the Security Exchange Act. Of course you know that?, because their timely SEC filing? All the requisite rules apply.
Rule 10b-5: Employment of Manipulative and Deceptive Practices
(b) To make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading, or
(c) To engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person,
So long as the accounting of WMB remains unresolved, nothing is definite. They can't say anything without running afoul of the law.
Any day now....
...definitely before 2030.
I do not argue "tens of billions"
May argument is simply, there will be $X proceeds returned to the trust by FDIC. And that it has to be based upon actual accounting of all assets of the WMI estate, settled or otherwise.
*You'll note I am not predicting orders of magnitude on that assumption.
WMIH only get a fraction of litigation proceeds. I don't recall it exactly, perhaps someone else can reference it.
I don't recall any mention of, if money/assets are returned to the trust, from FDIC, that those recoveries are in any way going to WMIH.
If this happens any other way, the trust is going to be sued for failing their fiduciary duty.
If I use you number of 55B.
Preferred get 75% of 55% = 41.25B
Common the remainder, 13.75B (<$12 per share)
OK, so in aggregate dollars per group, commons receive 1/3 of preferred.
"Accrued interests" There is no such thing in the POR. 75/25 is it.
That can not happen. The 75/25 split is absolute.
Sorry, I missed it.
My thought was strictly on the steady two day rise and honed in on a affirmative determination with the final 10 minutes of trading. This is what I am quite familiar seeing in other OTCs.
Today's trading activity, customarily, suggests a PR release is imminent.
Not to say there will be one, but you know.
What nonsense. JPM got performing loans and they continued to perform. JPM did nothing to deserve accolades. Reuters is worthless.
They dragged the price down for someone to buy in at $2.60.
When Fairfield & Gallagher came on board, the entire M&A process reset, back to square one. These are new people with multi-millions at stake, so their rules (w/ KKR approval). They will have to vet the entire M&A process including all previous research, corporate structure, financials, meeting with the company assisting our M&A,.... It will take months before they are ready for ANY active M&A preparation.
Don't expect anything until six months after their start date.
Past due
WAG 06/26/2015 01:14:56 AM