Really, is that how it works? Why issue 3.5 billion shares? Why not issue 1.75 billion, then the stock would be $20. How about WMIH issue 500 million shares, then the stock would be $70. Do you see the point i'm trying to make? It doesn't work the way you think it works.
WMIH is trading around $1.30, right now. In order for WMIH to aquire a $35 billion portfolio by issuing 3.5 billion shares the share price of WMIH would have to already be at $10.
Thank You, I think that is why some of the hedge funds were told to sell because MBS's were shared around to other financial service industries. About half of what was originally planned and distribution will be adjusted accordingly.
Lucky, Thanks for the clarity. That explanation seems logical to the point that it almost has to happen that way. I couldn’t see the benefit for the post exit hedgies before. Some of those hedge funds have been here a long time and they don’t wait for nothing.