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It is recognized on this board and many others that the formation of an equity committee is important because it means that there IS a higher possibility for equity recovery of some sort. This in turn will make this more attractive to conservative buyers waiting on the sideline to get in. The judge allowed the US trustee to gather current shareholder information. And now there is a EC formation meeting with the top 30 equity holders. This tells me that there is definitely money that may spill over to equity holders. She would of thrown the UST out if there was no chance. The fact is that she is our best friend at the moment because she knows the settlement details between the two parties.
You smell that? Sniff sniff....dollar land around the corner....
It will be very interesting to see what the MM's do in terms of making money this week. It will be particularly interesting on how they handle this weeks volume. I think they may let it run a little tomorrow but I bet they will try to sell the crap out of the accumulated shares that they have gained/bought from the week longs the last few days.
Is there going to be a mole from the board present at the EC meeting tomorrow?
In the event that this does turn into an incredible return, I will be using the profits to return to school and finish my degree.
Wow interesting. Ya i don't drink those that much, but good to know. Thanks! That is a prime drink of choice for many in my neck of the woods.
You got to look at this from the big picture. Weil does not represent the shareholders. They are working in behalf of WMI's best interest. The curve ball in this is the fact that settlement talks have lead to a US Trustee stepping in. The question is will THJMW allow WMI to reorganize while canceling the Equity. IMO no. A motion to dissolve the EC will be denied especially there is any indication of a huge settlement without consideration to the Equity.
No the pdf is an application to be on the committee, a share is a share. They won't appoint someone to the committee who is a post seizure holder. That wouldn't make any sense. Now we just need someone to show up to the EC meeting to confirm that representatives of TPG (Bonderman) are there. Any one in Delaware? :)
I looked up the local chase branch in my town on my Counties DIAL service to get an idea of who owned the property:
568 SW 5th st Redmond, OR -
WESTERN SERVICE CO ---->>> SUPPOSEDLY THIS IS WMI SUBSIDARY
C/O JPMC LEASE ADMIN - ATTN: S STUMPF
1111 POLARIS PKY 1J
COLUMBUS OH 73240
This same address is listed as the owner of all the other county branches in my area as well.
THRU: Industry Consulting Group Inc.
AGENT: PAP
Found this very interesting. They evidently didn't pull a permit for replacing the WAMU sign....this is the last permit pulled on record:
Last permit pulled:
APPLICANT...............: WESTERN SERVICE CO
BUILDING CLASS..........: SIGN
BUILDING USE............: COMMERCIAL
APPLICATION DATE........: 10/05/01
STATUS..................: ROUTE2
FINAL DATE..............: 11/15/01
DESCRIPTION.............: WASHINGTON MUTUAL SIGN
********** Project 3131 has 2 permit(s) as follows **********
PERMIT ID...............: B01-313101 Project# 3131
ISSUE DATE..............: 11/09/01
************* Project 3131 Permits Continued ************
PERMIT ID...............: E01-313102 Project# 3131
ISSUE DATE..............: 11/09/01
FINAL DATE..............: 11/15/01
COMMENTS................: 11-15-01 FINAL APPROVED TJ
I am curious how January is going to play out. I think that the next two weeks are going to be very exciting for all shares. The commons will probably feed off of the momentum of buying from all the other securities. Im smelling dollar land around the corner. OR what will possibly happen is the amount of heavy trading is going to result in a HALT like good ole Diamond has predicted.
I want to say thank you to all on this board who have put their own blood, sweat and tears into researching and sharing information with everyone on this board. I can't wait to book a trip to Vegas and hopefully meet some of you. Cheers to hopefully a very prosperous 2010!
Yes definitely looking much more promising. IMO today's action was minuscule considering many traders are out for the new year. With more news of the EC and NOl's next week will be very very interesting.
This whole thing is still on the 'down-low' if you know what i mean.
WaMu Says Tax Refund May Double, Shares Soar - link
http://abcnews.go.com/Business/wireStory?id=9457661
WILMINGTON, Delaware (Reuters) - Washington Mutual Inc said it could receive an additional $2.6 billion in tax refunds due to a recently enacted law, sending shares of the bankrupt bank holding company soaring on Thursday.
The added money could also help resolve various legal disputes surrounding the company's collapse last year, one analyst said.
Washington Mutual could receive the additional refund following the enactment in November of a law that permits net operating losses to be carried back for five years, from two years previously. That change would double the company's expected refund, according to a court filing on Wednesday.
The company's preferred shares rocketed nearly 50 percent to $59.48 while its common stock rose about 11 percent to 13.71 cents, in pink sheet trading.
One analyst said the refund could clear the way for a settlement of the bankruptcy case, which has been bogged down in disputes over claims to company's assets.
"It could be one of the main mechanisms of fostering a settlement. The apportionment of the refund could make all the sides happy," said Kevin Starke, senior vice president at CRT Capital Group in Stamford, Connecticut.
The company's main asset is a deposit of about $4 billion that is also claimed by JPMorgan Chase & Co Inc , which bought Washington Mutual's failed bank operations from a government agency for $1.9 billion last year.
JPMorgan also has said it has a claim on some of Washington Mutual's tax refunds, which until the law change were estimated at up to $3 billion. The refunds and deposit are the company's largest assets.
Earlier this month, an office within the U.S. Trustee asked Washington Mutual to provide a list of its shareholders so it could survey them for their interest in serving on an official committee representing equity holders.
Shareholders are generally the last creditors to receive a distribution and such a committee is usually opposed by the U.S. Trustee unless shareholders can prove they can reasonably expect a distribution after all creditors have been paid.
Washington Mutual said in its operating report for November it had $8.3 billion of liabilities.
Washington Mutual and the U.S. Trustee's office could not be immediately reached for comment.
The case is In re Washington Mutual Inc, U.S. Bankruptcy Court, District of Delaware (Wilmington), No. 08-12229.
(Reporting by Tom Hals; Editing by Tim Dobbyn)
Copyright 2009 Reuters News Service. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
They were seized and SOLD to the 'highest' bidder. They didn't have a chance. Regulators jumped the gun and JPM was right there locked and loaded ready to pull the trigger.
There had to be an example made to get TARP to pass. The wamu takeover instilled fear in lawmakers. Fear was the fuel behind passing TARP. The notion that 'we can't have another WAMU' along with failures and takeovers from other large firms was why TARP passed.
Shouldn't the real question be why the heck didn't we have an Equity Committee long ago? Why the sudden need for one? Why do WMI shareholders need representation in the case now? Why does the UST need info by Tuesday? I mean literally everything on the agenda for yesterdays hearing was THROWN out - all FOR THE SHAREHOLDERS. People don't understand. There HAS to be SOMETHING going on in terms of a settlement. My logic leads me to believe that the UST was called in because the settlement talks weren't involving us. They must must have been close to some sort of an agreement, yet maybe what is going on is that THJMW is the one throwing the curve ball in here - FOR US. She not going to let a multi-billion dollar case settle between JPM and WMI without consideration to WMI shareholders.
Weil is getting big $$ for representing the company's best interest - not ours. IMHO. If his hard work pays off for the company will shareholders indirectly benefit? Probably.
My .02
Technical analysis is a tool that A LOT of people use to trade with. No matter what your trading, patterns in price action can be recognized and used to your advantage.
I don't have any solid evidence to back this up, but from talking to my father (hes a distributor) about TSSP the other day Dirk is no longer with the company. I will try to find out more information, again im not sure if this is true (not trying to start a false rumor) but that is what I heard.
I used to have a few million shares a while back before the economy crashed. I actually used to installed their solar systems. Great systems, poor company management.
Thats really smart, good for you. Btw weren't you also in TSSP a while back? I think I remember your name from that board. I lost quite a few $$ on that one...not too happy with them.
lol ya i guess all the dumb idiot investors are buying commons lol...
great post!
One thing that I find particularly significant that many people on this board fail to recognize is the fact that we as shareholders are currently involved in the 2ND LARGEST BANKRUPTCY CASE ever to be put through the US courts. The largest BK case was Lehman Brothers last year. Look at how much media attention that got. Now it is our turn and there is a lawsuit involved. There are billions of dollars involved that are not accounted for.
http://www.bankruptcydata.com/Research/Largest_Overall_All-Time.pdf
Also this document describes the role of EC's:
http://www.bayardfirm.com/pdfs/equity-committees-representation.pdf
From it an example of recovery is given regarding Trump's BK case:
"...The more prevalent view is that when equity is marginally in the money, shareholders need an equity committee. While there may be substantial debt in a given Chapter 11 case, expert financial testimony can show equity is substantially “in the money”, even if only at $1-$2 per share. For example, in the recent Trump Hotel and Casinos case, there was approximately $2bn in debt, and approximately 30 million shares of common stock equivalents. The equity committee increased the recovery for shareholders from virtually nothing to tens of millions of dollars ($2-$3 per share). This return turned out to be inconsequential to bondholders, who received most of the new equity...."
As long as we keep making higher highs and higher lows we will close strong.
She would have said that there is no need for an EC if she didn't think WMI had any grounds for a settlement. Remember to be in bankruptcy protection assets need to be less then liabilities. We all know that this is a gray area given the value of the holding company prior to being seized. She knows that too.
If there is proven wrong doing by any entity in the lawsuit then there is a DEFINITE need for an Equity Committee!
Good luck to everyone!
same here i was literally on the brink of hitting the send order button...but i realized that it was just a impulse of 'fear' that was causing me to think that way. Glad I stopped to look at the chart a little closer cause now I think we may close in the .12-.15 area today. Weak hands let go today big time.
I am currently reading a book called "Trading in the Zone" by Mark Douglas, highly recommend it - it will change the way you think when you trade.
anything can happen....looks like we might be reversing on the 5 min chart right now.
No i definitely agree with you that a reality check is in order for many newbies invested in this stock. Ive been holding this since Oct of 2008, flipped once for a little profit. Rumors and talks of settlements over the last 18 months on this board have always enticed newbies to buy only to be disappointed in the short term with a decrease in pps. However while many here (including me) still dream of a day were we wake up to a $4-$24 per share settlement the timing of buying in right now in terms of the probability of some sort of settlement/progress towards one couldn't be better.
The great thing about this whole situation right now is that the 'sleeping giant' (the MEDIA) is starting to wake up. Many of us on this board including me wondered if we would ever see significant news of this case break. It finally has, and I believe it is just the beginning. If you look at how much media attention Citigroup, Lehman and others have received over the last year and how it affected their stock prices, pay close attention because it is our turn now!
Definitely what new investors need to know is that while their is a higher then normal chance that shareholders may see a settlement don't expect it by years end or the 1rst quarter of 2010. This is also a great opportunity for those flippers too so expect a little retrace after this weeks run.
I wish everyone on this board a very merry xmas / Hanukkah / whatever and a prosperous 2010!
(btw anyone reading this and looking to get in, do your own Due Diligence. Don't invest because of others "price to the moon" - "$45 per share" misleading forward looking post. Think for yourself, make your own decision and KNOW what the risk are)
Ya i don't know if I could wait a few months for a measly $4-$24 a share settlement :)
This is only the beginning. The discovery is going to create a 'snow-ball' effect in the media. The media now has dirt to report on. Get ready. I don't like to speculate future pps on stocks but this may very well push us up and beyond our .44 high a couple months ago. Time will tell. GLTA and congrats.
Haha seems like the sh*t is hitting the fan today!! Go Wamu!