Washington Mutual Preferred fka WAMPQ

[marayatano]

Factor interest for 2 years (and continuing to earn interest daily) on $4 billion deposit WMI has with Chase Bank and the interest on $5.6 billion tax refund being held in escrow, that would put preferrds in the money.

Interest on $4 billion for 2 years at the rate of 4% (guessing on rate) is $320,000,000 and continuing to incur interest daily (but must off set the interest the bond holders are earning).

Add in interest on the $5.6 Bill tax refunds? (When does interest start?)

Factor in Tax loss carry forwards... See link: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=56245069

Preferreds in the money...

imo

Lucullus Member Profile Lucullus Share Saturday, November 06, 2010 9:45:50 AM
Re: None Post # of 28911
THJMW thought: "The examiner is useless, this has already been investigated to death!" - She was right!!!

THJMW thought: "I don't think equity is worthless!" - She will be right!!!

She gave us the EC because there is enough money to bring at least prefs in the money - it only has be divided in equity's favor.

After 5 days of reading and brainstorming I'm of the opinion that Prefs are still in an acceptable position.

Only 500 Million out of the money - with billions available as tax refunds- chance not so bad imo!

Susman will find a way - at least for prefs !

ptolomeo Member Profile ptolomeo Share Sunday, November 07, 2010 10:02:33 AM
Re: Lucullus post# 28846 Post # of 28911
Read this
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_W/threadview?m=te&bn=86316&tid=594517&mid=594517&tof=17&frt=4#594517

Looks as if Hochberg is missing some numbers and with them correct we are 100 millions out of the money. By his own numbers.

I think we are not that bad, but we should all be cautious here.

Good luck.