Replies to post #31214 on Washington Mutual Preferred fka WAMPQ

[MasterBlastr]

lmfbo . . . buy at the bell.

[clawmann]

I don't think there is anything there that we didn't already know.

After all Allowed Claims (the word "Claim" means a claim for the payment of debt) are paid, the prefs and the REITs share every additional dollar pari passu (until they hit face value). Based on the info I have looked at, that means the WAMPQ's get 40 cents of each additional dollar.

As posted here before, it has been reported that between $300 and $400 million more is needed to satisfy all Allowed Claims. After that the money flows to the prefs/REITs.

So, assuming the accuracy of this, if there is $1 billion more (I am being conservative, I think), some $600-$700 million goes to prefs/REITS with 40% of that($240+ million) going to WAMPQ's. 3 million WAMPQ's outstanding. That would give the WAMPQ's at least $80/share.

If there is $1.4 billion more, the prefs/REITs would share some $1billion, with $400 million going to WAMPQ's. That would be $133/share.

The above is based only on the information I have looked at or been told. So it may not be correct. It is a rough ballpark, at best.

And this does not take into account any potential future events such as the hedgies being found to have engaged in securities fraud such as insider trading. If that happens, some or all of their currently Allowed Claims could be disallowed, and they could conceivably be thrown to the very bottom of the waterfall or just kicked out entirely.