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Assuming plain numbers have meaning:
Using a conversion ratio of .03426 to 1, and using the original 1.7 billion shares of common:
We Joe-Six-Pack, Mom-and-Pop shareholders now own 58,242,000 shares out of 201.2 million, or 28.9473% of the company. This leaves 142,958,000 shares (71.0527%) for someone other than original equity.
Or
Using a conversion ratio of .03426 to 1, and using the adjusted 1.4 billion shares of common:
We Joe-Six-Pack, Mom-and-Pop shareholders now own 47,964,000 shares out of 201.2 million, or 23.8390% of the company. This leaves 142,958,000 shares (76.1610%) for someone other than original equity.
Shareholders who own the 70-plus percent of the company have access to better information than ordinary investors have, and are trained professionals. Therefore, it is unlikely they are trading any of their shares. The shares being traded are non-existent shares (shorting and covering), and an unknown quantity of shares traded by ordinary equity.
There must be a profitable reason that someone owns the 70-plus percent of the company, and is holding on to it. Otherwise, they would have dumped all of their shares when WMIH opened @ 1.14.
Seventy-five million Elvis fans cannot all be wrong.
The owners of the 70-plus percent of the company did not invest in their knowledge, experience, and in this stock to watch out for your rights or your investment. Neither I nor anyone else with any sense did either. No one is looking out for you except you. Fend for yourself and take responsibility for the results of your own actions.
The main thing that should concern ordinary equity is can the owners of the 70-plus percent of the company maneuver the shares so that ordinary equity loses again.
Not opinion. Fact.
Both the escrow accounts and the new WMIH will be valued by powers beyond us, to be what they will be. There will never be 'a short squeeze' because those who are shorting know what they are doing. They are professionals who could almost care less about the value of the stock except to get in and get out on time.
Being the best traders in the universe, the Ferengi must have known that a buyer and seller can be the same entity. An entity simply sells quantities of an item he does not own and does not assume possesion, driving the price of the real item down, and then buys the item back at the lesser price, reaping the profit.
It is called shorting. The majority of WMIH shares traded each day are ghost shares, or shares that do no exist. IMO
After the initial conversion, and the subsequent adjustment, the correct formula for determining the quantity of converted commons is:
0.03426 X old commons (WAMUQ) = new commons (WMIH)
As in 0.03426 X 500,000 = 17,130 (WMIH)
As in 0.03426 X 50,000 = 1,713 (WMIH)
Current ownership of WMIH stock by BOD
Willingham had 34,503 shares before getting the recent freebies(?) of 165,154. It looks like he still has all of his 1M converted shares.
Apparently, other BOD members did not own any commons and now have 165,514 shares each.
This manuevering and recent filings indicates activity, but to what end? EOM
http://finance.yahoo.com/q/mh?s=WMIH+Major+Holders
Rule 506 of Regulation D
http://www.sec.gov/answers/rule506.htm
TD Ameritrade WAMU (BK)
I spoke with REORG at TD Ameritrade just now. When TD Ameritrade receives and registers ballots (for each class) from registered shareholders, they 'set aside' the shareholder's shares until the court or WMI finaizes whatever action is pending on the shares. I can still see how many shares I own (online), but the name of the stock does not appear. TD Ameritrade must register your ballot before they 'set aside' your shares. It makes me wonder how many shareholders are oblivious to what is going on, and will never vote. Like bankruptcy, this voting process is legal theft.
Everything that will transpire between now and the time (reorganized) WMI issues new stock is foregone. In other words, Walrath is going to approve POR 7 as it stands, the reverse split will happen, and the issuace of a new CUSIP and new shares will happen. IMO EOM
Best regards,
David West
TD Ameritrade WAMU (BK)
Received my ballot today for Commons. Everything is made crystal clear except where to send the ballot and release, which is a single document. There is no return envelope (in my packet), and even though there is an address on the cover letter, nowhere does is say where to send the completed ballot.
I intened to call the REORG section tomorrow and UPS Next Day Air to whatever address they give me.
Best regards,
David West
TD Ameritrade WAMU (BK)
Just spoke to a consultant at Kurtzman Carson Consultants (KCCLLC).
TD Ameritrade individual account representatives may not have full information on the ballot process yet. The REORGANIZATION (REORG) people at TD Ameritrade will be handling the ballots via a third party. TD Ameritrade and their third party are responsible for getting the ballot to shareholders registered with TD Ameritrade and responsible for giving accurate instructions on how and when to return the ballot to them.
I specifically asked for the definition of the word ‘nominee’. The consultant defined it as ‘your Broker or their representative’.
The Broker or their representative will send the ballot to the shareholder and the shareholder will send it back to the broker or their representative.
If any shareholder of WAMU (BK) stock has not received their ballot by January 25, 2012, they should contact KCCLLC for instructions. EOM
Best regards,
David West
TD Ameritrade on WAMU (BK)
I am sorry if this is old news:
From my account representative at TD Ameritrade:
Those who are in control of the ballot are disseminating very little information to the parties concerned, including brokers. WMI, their BOD, or their ballot representative has contracted a third party vendor to send information to holders of classes of WAMU (BK) stock in reference to the ballot. The timeframe is unknown, but their best guess is within two weeks.
Do not count on your broker to help you with the ballot in any way.
********
I recall at least one other time in this circus when we had to send a reply by next day air for it to arrive within the time stipulated.
They have intentionally made it difficult. Looks like a bumpy ride ahead. EOM
Best regards,
David West
Shorts
On or about October 1, 2011 iHub listed shorts for WAMUQ as:
3.12% or 53.35M shares shorted.
As of bell closing on November 9, 2011 iHub listed shorts for WAMUQ as:
2.59% or 44.29M shares shorted.
Assuming iHub’s numbers reflect the ‘shorts’ with which we are concerned, this appears to be a reduction of 9,063,000 shares, or 16.9872% within a six-week period.
The shorted shares listed by iHub stayed above 53M for many months since 2008. Obviously, some investors have recently covered. The question is ‘why’, with the hopeful answer that it means something good for equity. EOM
Old News
Washington Mutual, Inc. Confirms Release of Securities Tendered Into Accounts With DTC
4:05p ET October 7, 2011
PR NewsWire) Washington Mutual, Inc. (Pink Sheets: WAMUQ.PK) ("WMI" or the "Company") today confirmed that it has instructed The Depository Trust Company ("DTC") to release, and return to the target CUSIP accounts, securities that were tendered into contra-CUSIP accounts established with DTC. Once securities have been returned to the target CUSIP accounts, such securities will be available for trading by the holders of such securities. These securities were tendered to contra-CUSIP accounts for the purpose of identifying and "freezing" trading of the securities in connection with release and exchange elections made with respect to WMI's proposed Modified Sixth Amended Joint Plan of Affiliated Debtors Pursuant to Chapter 11 of the United States Bankruptcy Code, dated February 7, 2011 (as amended, modified or supplemented from time to time, the "Plan").
The holders of the securities will have an opportunity to resubmit release and exchange elections in connection with any modification to the Plan or any other chapter 11 plan of reorganization filed in the future. Except as noted below, all prior elections with respect to released securities shall be disregarded.
Holders of (a) WMB Senior Notes - both those who filed claims classified as "WMB Senior Notes Claims" in Class 17A as well as Non-Filing WMB Senior Note Holders - and (b) preferred shares classified as "REIT Series" in Class 19 shall not have an opportunity to resubmit release elections; such holders' elections made in connection with the Plan shall remain valid and enforceable in connection with respect to any modification to the Plan or any other chapter 11 plan of reorganization filed in the future. To the extent that a holder elected to grant the releases set forth in the Plan, such holders' information was recorded in an escrow CUSIP account established with DTC, or recorded by Euroclear Bank S.A./N.V. ("Euroclear") or Clearstream Banking, societe anonyme ("Clearstream") as applicable, prior to such holders' securities being previously released from the contra-CUSIP.
Security holders affected by these procedures should consult with their respective financial and legal advisors.
Additional details, as well as WMI's Plan and related disclosure statement are available at www.kccllc.net/wamu. This press release is not intended as a solicitation for a vote on the Plan.
SOURCE Washington Mutual, Inc.
Zecco NON-DTCC Eligible List
Did not see WAMUQ.
Other WMI stocks are listed.
https://www.zecco.com/forms/known-non-dtc-eligible-list/downloadform.aspx
Politics: Is the SEC Covering Up Wall Street Crimes?
http://www.rollingstone.com/politics/news/is-the-sec-covering-up-wall-street-crimes-20110817
That is exactly what is still missing.
"The debtors are allowed to make changes to a Plan prior to confirmation so long as it does not further hinder / devalue a given class."
There is still no valuation, and this amended plan has no numbers. I cannot see the EC agreeing to it unless there is an explicit valuation and appropriate numbers in the GSA. EOM
Now that is the best humor in a while!
Excellent analysis, which parallels my speculation in October 2008. My highly intuitive and informed guess was that an Equity Committee, with access to the best legal minds available, tenaciously pursuing due process was the only hope equity had of staying in the game. At that time I bought in heavily (post seizure).
The very act of announcing a deal that includes equity (commons) should be enough to cause those who can afford it to buy as much as they can stand before it is too late.
Do not look for this to be over by Friday. Susman and the EC, and all other interested parties must protect themselves by making sure that there are no weak points or loopholes in the agreement as there is between JPM and FDIC. IMO EOM
David West
The action in progress is a 100 for 1 reverse split, which means for each 100 shares you now own, you will own 1 tomorrow morning or whenever the action has ended.
My 1,000,000 shares will equal 10,000 shares, and will be worth the market value tomorrow morning. The PPS will have to reach $0.16 for me to break even on my initial investment of $1,600.00.
I got this information via telephone from my account representative at TDAmeritrade.
Good luck all!
Fsshon - Don
I am not a paying member, so I could not leave a private message.
Fifty miles ain't nothin' to a Texan.
We could not have two better people representing our interests than Susman and Willingham. These two will always go the extra mile for the same cost.
Count on it! IMO EOM
Hurlserv -
I think you will find that the EC hired Solomon to render a true unbiased valuation of WMI only. The valuation may include the subsidiaries absorbed by JPM because they may still belong to WMI, but it is unlikely that the valuation will include WMB because that is a done deal.
The independent examiner will be looking into the actions of the various people, entities, and parties that were and are involved in the seizure, sale, and bankruptcy negotiations of WMI to determine if their actions were appropriate, legal, or criminal. It is unlikely that the efforts of Solomon and the examiner will overlap much except that the examiner may include a valuation of WMB.
The court has already stated that they will frown upon paying for duplicate services.
Lawrence147 -
As you know, the chances for recovery of any kind in the WAMU fiasco, is through the courts and due process. For months, the chatter on the board has been predominantly about a ‘settlement’ with JPM and FDIC. A settlement has always been out of the question because no one (WMI) had made any effort via due process to cause JPM and FDIC to offer a ‘settlement’ until yesterday.
The EC has finally begun what we have anticipated for months. Willingham has filed suit for a shareholder meeting, and the EC has demanded the appointment of an examiner. Due process was the key in both acts. In the entire 19 months (+ or -) since the seizure, these two actions have brought us closer to forcing JPM and FDIC to make an offer than all of the other court actions combined, further proof that the current BOD was willing to sweep everything under the rug and move on.
The results of Solomon’s evaluation, the results of an examiner (once appointed), and a new BOD are what we will need to file the necessary documents in court to compel the process of real settlement or restitution to begin.
Your chances of realizing $24 are getting better. IMO EOM
EC Reply to Objection to Annual Meeting
http://www.kccllc.net/documents/0812229/0812229100419000000000002.pdf
What a great broadside by the EC! I say hard about, and fire at the water line!
This document is just another great example of the difference in the quality of the Rosen team as compared to the team put together by the EC.
Never bring a knife to a gunfight!
drrugby -
Excellent find.
The important part about the Barclay deal for WAMUQ is not so much that the deal will be unwound, but that the BK court is willing to consider the act. If the sentiment of BK court (nationwide) is changing, it will add to the impetus of the movement on several fronts (Congress and other courts) to unwind what happened in 2008 and call to task the real culprits in the meltdown. IMO EOM
Catman26 -
As you can see, the media are confused as a lot of our iHub posters are about what is going on. The Senate panel is investigating the conduct of Washington Mutual Bank (WMB), but it is the holding company WMI that is trying to emerge from bankruptcy. EOM
Lawrence 147 -
Rosen is frustrated to the max. His rhetoric and actions are beginning to remind me of zits, puberty, and bullies on the football team. It is laughable that he neither had the courtesy of allowing the EC discovery of the draft POR, nor did he include a valuation or balance sheet with the document, yet now he wants the courtesy of discovery of what the EC is doing. To date, every party and the court have made him look like the fool and he made it easy for them. His record of accomplishment in this case makes him look like a recent graduate of a law school that did not teach him very much. IMO EOM
Lawrence 147 -
Sorry for the late reply. Been a long day.
I had not seen that post. Fact is stranger than fiction, and there are more things going on like that than even we can imagine. Attorneys, like politicians, are a necessary evil. They have only two goals. To get paid and to win so that they get paid more. All I ask is that no one changes the rules when it gets to be my turn. Changing the rules is what Rosen and crew are attempting to do. IMO EOM
Barefoot123 -
We can only guess at issues like that. It would be nice if it works out that way. IMO EOM
XOM -
To all who read these words -
I personally do not care if the Equity Committee (EC) has to spend every cent of every asset owned by WMI to determine the value of WMI and to protect equity. In the end, if WMI cannot pay anyone because the EC used up all of the value of WMI, and WMI, along with equity, dissolves into dust, so be it! Even then, I would not consider the conduct of the EC to be out of line. At least the EC will have fulfilled its fiduciary responsibility to equity in the process, which is more than WMI can say toward us. If the EC does not conduct themselves this tenaciously, we have lost all anyway. IMO EOM
Lawrence 147 –
He is not ‘stoopit’, but he obviously does not think others have the ability of independent, quality thought. I can see him now with a bloated face the color of a beet, stomping his foot, pounding on the table in front of his attorneys, and getting ready to have a real tantrum by thrashing around on the floor. From the rhetoric in the filings, someone thinks that when they speak, others should listen attentively and act accordingly. NOT!
Seriously, I do not think it is out of the realm of possibility that the EC will combine Solomon’s evaluation with a new POR authored by the EC if the discovered assets warrant such a move. I am waiting for signs of this tactic. IMO EOM
Gmenfan -
I am only guessing, but WMI BOD and their attorneys treat the EC as outsiders who can throw rocks at their glass house. They only eat from the same table when court convenes. In the meantime, they select their targets very carefully and throw their rocks accordingly. Their next rock will be the valuation of WMI. Let us hope it does not ricochet and hit the shareholders. IMO EOM
Paragraph 4 -
This is why the debtors (WMI BOD) wanted the Equity Committee (EC) disbanded and it is what the EC is doing without reporting to us (very often). It is key to remember that there was no valuation or balance sheet present as part of the draft POR. WMI and Rosen are now frustrated by the efforts of the EC because all of the planning they have been doing for 18+ months has ended with no gain for reorganization or for resolving the BK.
http://www.ghostofwamu.com/documents/10-50731/10-50731-0011.pdf
'Speak softly and carry a big stick, you will go far', is a West African adage, also attributed to Teddy Roosevelt. The wisdom in this adage is the tactic of the EC. As the whole world awaits the rebirth of the sun each morning, the world of the WMI Chapter 11 Bankruptcy, every party concerned, awaits the valuation of WMI by Solomon. Will it be Liabilities greater than Assets or Assets greater than Liabilities? If it is the former, equity has lost everything in the Chapter 11, if the latter, equity will see the stock traded up to the value of WMI.
The EC is not in charge of what is going on in the BK. They have to follow procedure by filing things in court, usually after someone else has filed (intervention). The two most important things they could have done have already been started. They have called for a shareholder meeting, and they have started the valuation of WMI.
The court is unbearably slow and too often indecisive. Hurry up and wait. It is not easy. Patience.
IMO EOM
Longhaulq -
WMI is the entity that fears the valuation. If they have been hiding assets and they are found by Solomon, their POR castle will crumble like dry sand. Additionally, the court may kick sand in their faces. IMO EOM
Hurlserv -
Thanks!
jpm_sux –
Good call. The fastest way for the WMB bondholders to assault WMI is to prove pre-seizure fraud or Fraudulent Conveyance for moving large sums of money to safer places in anticipation of bankruptcy. The problem with filing Fraudulent Conveyance is that if it actually happened, it is likely that the UST would have already filed that charge against WMI because it is their duty to do so. The most logical choice for the WMB bondholder assault is against FDIC and JPM. This will be the real court case that this board has been talking about for 18+ months. IMO EOM