Thoughts on the current state of affairs
Hello all,
I have a few thoughts and questions on the current state of affairs. First off, as AZ has stated, the WMIH PR Machine seems to be alive and kicking. It is very interesting to me that a bunch of supposed BP users have come here in addition to a bunch of new posters, all throwing out wildly different interpretations of what is going on and what will happen.
Reverse split: First, we had WMIH go OUT OF THEIR WAY to threaten a reverse split just to hang on the their NASDAQ status. All the while they were knee deep in the merger negotiations with NSM. I wish we could string them up for this. Legally it might be one thing but to me, it is bald face lying and obfuscation to the share holders. Obviously, they were trying to flush us out of our shares.
Now, in place of this, people are coming here and claiming that a R/S is necessary going forward and furthermore, is going to be beneficial to the future of WMIH. This being said, after we are on the road to a merger where we are merging with a company full of employees that would give us the staff to manage the mortgages in trust we believe exist in a bankruptsy remote state and safe harbor about to be lifted (and presumably value of said trusts to be revealed). These new "veterans of WAMU" and "experts" are casting doubt on the value of this deal and poor mouthing the value of the stock. At the very least the stock is worth $1.40 WITHOUT a trading multiple. What is the trading multiple of a loan origination company? Once this deal closes, the public will start trading this stock at a multiple of value based on performance.
Safe Harbored TRUSTS: I think we can safely say at this point that they most ceratinly exist. And if for no other reason than the constant attempt to make us feel they have no value, they have value. Most likely they have value akin to what some people have done lots of research to deduce! We may disagree or debate mechanisms of payout, or roll over or shares for value, but there is great value there. Also, one of the biggest points of confusion and contention is how or when these assets will be distributed and or in what form. I want to throw out there that somehow, these assets flow through the new company. I just don't see them dissolving the trusts per se. They are money making devices. Some may have matured but others are still functioning. It would make more sense for us to be owners of the management of these trusts in some way and benefit from the revenue. But would we get dividends or would we get past dividends from these trusts? And how would that work without dissolving the revenue machines? And for the matured ones that are cash, would it not make more sense for that cash to be put to work again for our benefit? What would be the mechanism of such is a definite point of confusion. But, they have a plan! And I don't see how we are not part of this plan! So for those poor mouthing this deal, let's get serious.
Merger with NSM: This simply has to be related to the trusts. On paper, NSM merging with an empty shell on the low end of their value cycle makes no sense. It would be like buying a second spare tire for your car. The NOLs would be useful but the apparent dilution of stock would not. UNLESS- this newly merged company is about to get a hold of a much larger group of mortgages to manage. Otherwise, the NSM guys are idiots, and this has been the greatest dupe of all time.
The Hedgies hate us and want to screw us: TRUE DAT! They have waged war on us ever since we got them dragged in and deposed which resulted in colorable claims for insider trading. They NEVER forgot that! But, at some point, money is more important to them than revenge. And I think when this merger closes, there will no longer be a need for the WMIH PR MACHINE OF LIES. But unitil then, expect mysterious posters coming here and spouting confusion and half baked truths. The situation is complex enough as it is without further confusion.
AZ/LG/RON etc.: Thank you for your contributions. I agree with much but disagree with some. But the bottom line is, you have looked deeply into the abyss and done your best and ARE doing your best to pull out information. I am also fully aware that you may be making inquiries or doing a few things that it is best not to disclose here. So, from that perspective, do what you have to do and don't worry if people bug you for additional details. In the end, time has proven that you are on our side as share holders.
AI
