Washington Mutual Preferred fka WAMPQ

[marayatano]

Now lets say you've been holding shares LT, and your tax rate is 15%. Why wouldn't you just sell them on the news? If by some miracle the hedgies said we're giving up xx amount to make preferreds worth 50% of FV... they would run to close to that level. Sell and be done with it and pay 15%

My opinion is, it would be better to get the part of the reorganized WMI2, since it would be worth more through appreciation. In any other BK, I would probably take cash, but since creditors was WMI2, then there is something there we do not see as they have "inside" information.

Why else would creditors want to give up their billion dollar claim against the BK estate and want to take a small portion in stock of WMI2, which is allegedly worth only 160 MILLION??? Creditors wanting WMI2 in itself is already EVIDENCE of inside information, ie. trading in billions for a small portion of millions. Almost like trading in their silver dollars for nickels/pennies.

The money is there...

... and in my opinion... if the GSA is intact at confirmation, preferreds are going to be part of WMI2, and NOT part of the liquidation trust as proposed by debtors.

SG are going to sandbag debtors & co. with the valuation of WMI2 as a operating company and NOLs (keep in mind, substantial NOLs can only be utilized if you have substantial income). The question to me only becomes, at what percentage is the split of WMI2.

However, imo, with just the valuation, and "some" NOLs, Preffereds are technically in the money and will be part of WMI2.

Throw in FJR, in my opinion, Judge Walrath already made up her mind in favor of equity because of the fact of creditors giving up their Billion $ claims and wanting WMI2 worth only in the millions. In addition, Walrath wants consideration for the releases... what better way to force money to pour over to preferreds by invoking FJR... and have consideration made for releases ?

So, imo, preferreds are in the money technically, we are just waiting on it to be official...


Strictly my opinion.