Replies to post #4194 on Washington Mutual Inc pfd K (fka WAMKQ)

[etzetrade]

Even GM still makes cars, however, new GM has nothing to do with Motor Liquidation Company, which is the name for old GM. The reason that Motor Liquidation company is there is because old GM still owned manufacturing facilities, 4 brand names (Hummer, Saturn..etc)as hard assets, and all liablities. Old GM seeks the buyers in order to pay out liabilities. If A>L, then old common gets paid, the price is around 0.50/share. Otherwise, it is gone.

[etzetrade]

Logically speaking, pref. stocks have better chance. So they is ROI is less than MAMUQ. The breakeven point is around $5.00/WAMUQ vs FV of prefs.

Again, if wamuq is not paid, prefs. might not 100% guaranteed. 100% is the key. It might be paid 100%, 90%, 1% (as current POR), or wiped out INdirectly (i.e. Cit's case).

So my point is that once common gets paid(lowest expectation by most posters--$2.00), then prefs get FV.