Replies to post #54832 on Biotech Values

[DewDiligence]

[OT] I’m not sure WM deserves to be in the same class with the others. The stock has already fallen by half since the summer and may have reached bottom.

>the treasury YC (except 30 yr) is under the FFR<

Today’s WSJ had a short article on this. Regards, Dew

[DewDiligence]

[OT] WM addendum:

WM is one of the best cases I’ve ever seen of management incompetence. With the business they had, all management had to do was not get cute and they could’ve been a cash-generation machine for the next millennium or so.

Now, amid the debacles elsewhere in the financial sector, WM management can tell analysts and shareholders that they didn’t do anything stupid and many will actually believe them.

[Jonathan Robinson]

OT: Leverage

You forgot ABK and MBI. Only reason they may survive is that the insured may invest in them to keep from marking down. This also brings up point of mark to market vs. reserving.

Jon

[zipjet]

>>Take a look at FNM, FRE, CFC or WM. Each have enormous financial leverage. Each is dropping fast. Each could easily go bankrupt if the Fed is not accommodative.

Less than 4 months later every one of those stocks has dropped in half.

They still suffer from huge financial leverage. Each risks bankruptcy if the Fed does not act or some other governmental act fails to rescue them. And that risk is higher than when I first made that comment last November.

ij

[zipjet]

>> ... FNM, FRE, CFC or WM. Each have enormous financial leverage. Each is dropping fast. Each could easily go bankrupt if the Fed is not accommodative.

Failure of WM closes the last chapter on that prognostication.

ij