Washington Mutual Preferred fka WAMPQ

[steved_45]

Newbie, I don't have PM.

You mentioned the dividends, are they like forward split based on the revenue of wamu?
Most-if not all dividends are paid based on free cash flow of a firm. It's a way to distribute money back to shareholders. If there's zero fcf and the firm is not capable of making dividends then the dividends will be in arrears and payable in a future date. In the pref's case it's basically like interest payable on a bond but these aren't bonds for the reasons stated in the prospectus that I posted earlier. They're a hybrid b/t bonds and common shares.

Is it really important right now?
Yes. The pref's have missed 6 div payments so far which is 77.5 * 1.5--$116.25 for the P's and a little more than half that on the K's. That's a lot of money. I think that if these got assumed by JPM then they would be worth more than FV because of the 7.75% that people would be willing to pay more for based on current interest rates.

Do you think we are good as far as the face value of preferred get paid?
Yes but I think this will take more time that most would like. I do think if JH submits for the record in October that in his findings there's enough in the estate for commons then these will run to 50-60% fair value and slowly creep up until settlement (kinda like the H's).

AIMO

Steve