Replies to post #27399 on Washington Mutual Preferred fka WAMPQ

[steved_45]

The stock's peak market cap was $62.3BB. Plus the bank was certainly trading at a premium to book value somewhere between 30-50% (1.3 to 1.5 price/book value is conservative for that era but I can't pull up any old balance sheets on yahoo finance to give a certain ratio)

http://www.doctorhousingbubble.com/washington-mutual-failure-and-collapse-wamu-largest-savings-and-loan-failure-in-us-history-the-rise-and-fall-of-washington-mutual/

So even if the price to book value is 1, I don't see how there can be an extra 90BB from what you've estimated (not to mention the billions of losses they posted in 2008)

[steved_45]

This article says their market cap on July 5, 2007--when they were just a couple dollars off their all time high--was 38.54BB.

http://www.dividendsmatter.com/dividend-analysis-washington-mutual-inc-nysewm/2007/07/05/

It would make sense that it was in the high 30BB because a stock price of $44 x 900MM shares o/s is definitely not 60BB plus like what the other article stated.

Edit: interesting to note that the article highlights that in 2006, WaMu had a negative cash flow growth rate of 33% and states "The fundamentals are all spiraling downwards. Not the kind of trend a long term investor wants to see."