diamond, there is no doubt in my opinion that the newly authorized 3.5 billion shares is MASSIVE by anybody's standards. With that said, they are going to use the shares as a payment mechanism so how they do that will be up to the BIG MONEY highly educated financial professionals.
While I think WMIH will need to purchase a "platform" of sorts, I do not think it will be Capmark. It appears to me that WMIH "cherry-picked" their Executives for reason. I have always thought, if possible that WMIH will purchase a private company for their platform so they can avoid the SEC and 1934 Act scrutiny of buying a public traded organization. Not only that reason but they can also play with the numbers far easier with a private platform purchase to WMIH's advantage.
Keep in mind, KKR/Blackstone has taken several companies private over the last three years, so I look for the platform that WMIH purchases to be private and to be in concert with business continuity to match the Executives WMIH "cherry-picked" from Capmark.
Now how WMIH utilizes these shares is going to be up for discussion but more than likely these shares will be used in separate placements and deals. Yes, whatever assets WMIH has to purchase they will use shares whether that purchase is from WMILT or other, but BIG MONEY always uses paper and conserves their cash. So expect WMIH to hold on to most of the 600 million already raised and for them to make asset purchases with paper/shares of the 3.5 billion authorized.
Let me give you an example of how large this really is. That is former WaMu, a 350 billion company (now would be around 600 billion) and through the turbulence in 2007/2008, the most shares WaMu had outstanding was 1.7 billion.
Now you have to assume these high-level financial gurus did not authorize 3.5 billion shares to play strip-poker but to build WMIH into a several hundred billion dollar conglomerate once again in an expedited manner. Or for those other people, they can believe this is a penny stock built with nothing more in mind than to lose money.
