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Correct, it is a rolling period, but now the last testing event was more than 3 years ago. So it is a "sliding window", and at the moment there was no testing event within this 3 year window!
03/19/2012 ----| |---- 03/20/2015 (last Friday)
^ |<--- 3 year window ---->| ^
| | | |
| |
Testing Event Perhaps next testing event
(ownership change allowed IMO)
WMIH could buy only the "servicing rights" from WMILT for the returned mortgages, if the theory comes true... Possible?
Let's assume this will happen, then EVEN FOR US (escrow holders) a lower PPS of WMIH would be better in a "stock for value" transaction. The lower the PPS the more WMIH shares for each P/K/Q escrow if the value is constant, right?
Hmm, but I love the idea:
against FDIC, in its capacity as receiver for WMB
That means AGAINST FDIC-R
It is, what it is!!!
M&A can be done today, no need to wait for shareholder meeting IMO because
1) KKR can exercise their warrants today since 03/19/2015 passed by yesterday (they agreed not to exerciese them until that date)
2) Reincorporation in Delaware is a sure thing because B-preferreds have voting power and more than 57% and the holder of the B-preferreds have agreed to VOTE FOR the reincorporation
3) The number of authorized common shares is not enough at the moment to convert all B-preferreds when an qualified acquisition takes place, but that is no problem because of
This should answer your question
http://www.sec.gov/Archives/edgar/data/933136/000119312514448569/d839695d8k.htm
Correct, but KKR could exercise all their warrants tomorrow. But I think they will not. IMO they exercise the warrants at the same time an M&A is announced and the B preferreds are converted.
"Wall Street" doesn't know much about WMIH apart from some insiders like Kevin and some other hedge funds, and the MMs playing their games. Last year the PPS increased in anticipation of the 2nd year POR effective date and then NOTHING happened!
This year, nearly no increase in PPS, but perhaps on Monday M&A news will get released and the PPS skyrockets. Who knows...
For me there is a reason why they WAITED for 3 years instead of buying a small company in the first and/or second year after POR effective date.
Something big will happen IMO
"Wall Street" will start to take a great interest in WMIH after M&A and up-listing to NYSE or NASDAQ and we see a volume of more than 10 or 20 million shares/day. THEN we will see a BIG spike in PPS.
Just look at the Accum/Dist line for the last 3 years in the chart below! Do you know ANY OTHER stock with a comparable Accum/Dist?!? I guess not!
http://scharts.co/18K9tny
You are right, rinse and repeat is not a possibility except they wait another 3 years when a new ownership change can happen, OR they manage to raise funds without changing the ownership structure...
Debt would be one possibility, or as AZCowboy suggested a "stock for value" swap for the escrows IMO
I hope the simplest answer is the reason: They are just WAITING for 03/19/2015 (third year after POR effective date) to pass by because on 03/20/2015 or later they can trigger a new "Testing Event" (ownership change) without jeopardizing the (at least) $5.9 bln. NOLs.
Friday after-hours or Monday pre-market could become very interesting IMO
Chart-Update
Based on your question, I put up my favorite $WMIH chart, the 3-year-daily (actually only 2.5 years to focus on the important things)
As you can see, the green line acts as strong support for the PPS. This support was tested several times (green circles), and the PPS bounced always off. So I think it could be possible that this support line gets tested once again (without M&A news) which would be in the range between $2.15 and $2.20. But in anticipation of M&A news or right before the shareholder meeting, the PPS can easily run to the range between $3.50 and $3.70! The RSI was "reset" this week, and Accum/Dist line is at its all-time high! The MA-50 approached also this support and turned upwards! It may cross the MA-200 in a few weeks! This is called "Golden Cross" (http://www.investopedia.com/terms/g/goldencross.asp) and could also boost the PPS! Very explosive IMO
Chart courtesy of StockCharts.com
You are right but IF the escrows OWN the mortgages, WMIH could buy only the servicing rights and service the mortgages for us (the escrow owners). Escrows would receive a one time payment for the servicing rights and then quarterly payments. And perhaps the mortgages get liquidated step-by-step. Could be a possible way IMO
http://www.bizapedia.com/de/THACKERAY-III-BRIDGE-LLC.html
And with Google all I can find is the following:
https://www.google.de/?gws_rd=ssl#q=%22Thackeray+III+Bridge+LLC%22
Tanja, thank you so much for your great contribution here and I hope the "Men in Black" won't visit you tonight for digging too deep ...
I am very anxious to the FDIC's answer!
Thanks tanjazielman, this could explain my post from July 2014:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=104593627
Especially my last question...
If the alternate outcome would have been NO STAKE in WMIH for "old equity" at all, then I think it was a good recommendation, and one could say "fair & reasonable". Don't get me wrong, I am pro-escrow, and think we will get some (much?!?) money, but only because he recommended to sign the releases you cannot deduce that escrows will be paid for sure...
IMO he wasn't allowed to sell/buy while being a member of the EC and privy to non-public information.
He already made a huge gain with the "free" shares he received for being a BOD member. When can they sell their first shares they got? If I remember correctly in March 2015?!?
PURE THEFT:
The chart looks solid, accum/dist at new alltime-high, and only 9 trading days until 3-year POR effective date! Last year, we had a nice up-run, but then nothing happened, but this year I think an M&A will be announced as soon as 03/20/2015 or the following weeks...
The opposite of a "Death Cross"
http://www.investopedia.com/terms/g/goldencross.asp
A Death Cross occured in August 2014 and after that the PPS went down:
http://www.investopedia.com/terms/d/deathcross.asp
After the (expected) Golden Cross I hope the PSS will jump above $6 or more...
Golden cross in a few weeks! Shorts will get toasted soon
I don't think so, volume is too low for after-hour news IMO
Looks to me like a sound correction before PPS will jump above $3
Only 10 business days until 3 year POR effectiv date...
...and then the M&A can happen IMO (and KKR can exercise their warrants)
03/19/2015 <----- 3 year POR effective date
Just wondering why we don't see any buying pressure!
Fannie Mae: FactChecking Michael Stegman
http://www.valuewalk.com/2015/03/fannie-mae-factchecking-michael-stegman/
They nailed it...
Let's wait a bit, but you could be right, too many possibilities to interpret this short article...
Yeah, that's good news also in my opinion!!!
U.S. Treasury says speed up reduction of Fannie, Freddie assets
http://www.reuters.com/article/2015/03/05/usa-treasury-gse-idUSW1N0VL00K20150305
tanjazielman, what's your take on this one?
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=111428337
The calculation is correct IMO but my question is...
Nice paraphrase for saying "the government wants to cover up the unlawful things it has done"...
No opinions on this Ocwen PR?
Is this our "deal"?
http://finance.yahoo.com/news/ocwen-sell-mortgage-servicing-rights-220244762.html
Hmm, when end of c-ship gets announced after- oder pre-market, don't you think it will gap up to $20, $30 or $40 and a stop loss won't help him?!?