Goldman recommends short selling Washington Mutual

I hope this is not from the same analysts that drove WM with his neutral rating down from close to $40 for the last few years ...... At least they woke up and cut to a sell in February. Why they have still a price target close to 10 is beyond me. With massive dilution already in place & on the way & no earnings in sight for years only "Wall Street Finest" are able to come to such an accurate number...... At least they have the balls to call a stock a short candidate. To my knowledge a very rare event. Too bad that they missed the easy money from $40 to $12..... Short interest in WAMU is already close to 20 percent ..... And when i start reading comments like this via Morgan Stanley Draaisma: “2008 the Best Period for Shorting Since 2002″ you have to ask where were those guys during 2007.......... One more similar story during this afternoon and i´m viewing this as an contrary indicator and i´m starting to get bullish....... ;-)

Ich hoffe das dies nicht derselbe Analyst ist der WM mit seinem neutralen Rating über mehrere Jahre und Kursen von ca $ 40 nach unten geritten hat. Immerhin haben die im Februar endlich auf Verkaufen gestellt. Um bei einer so gewaltigen Verwässerung sowie keinerlei Aussicht auf Gewinne in absehbarer Zukunft und nachweislich einem des übelsten Managements auf ein KZ von $10 kommen kann ist wohl nur erfassen wenn man zum inneren Zirkel von "Wall Street Finest" gehört Die nächste KZ Reduzierung kommt dann wohl mit der nächsten Kapiaterhöhung..... Immerhin haben Sie "die Eier" eine bestimmte Aktie als Short zu brandmarken....Kommt ja nicht alle Tage vor. Blöd nur das dieser Rat nicht $30 früher gekommen ist.... Short Interest beträgt bereits jetzt satte 20% ...... Wenn ich dann noch Ratschläge wie diesen von Morgan Stanley lese Draaisma: “2008 the Best Period for Shorting Since 2002″ muß man sich schon fragen wo der im Jahr 2007 Urlaub gemacht hat..... Noch eine solch geartete Meldung mehr an diesem Nachmittag und ich werde bullish... ;-)

Goldman recommends short-selling Washington Mutual

Goldman Sachs recommended short-selling Washington Mutual in a note to clients on Friday, and cut its price target to $10 from $12. "The bad news is that our new product-by-product analysis of its mortgage portfolio suggests $17 billion to $23 billion of embedded losses in WaMu's current book of business, of which only $3 billion have been absorbed so far; subsequently, we forecast a $14bn provision charge in 2008," the broker said. The good news is that it believes WaMu's $7 billion capital raise should be sufficient, seeing a year-end tangible-equity-to-tangible-assets ratio in excess of 7%.

Let´s hope the chinese Walls have prevented a conflict of interest......

Bleibt zu hoffen das die Chinese Walls innerhalb von Goldman funktionieren.....

I Want My Buyback Back..... Washington Mutual Edition Part II

They really should have hired Homer or Paris Hilton to run the company.... No joke! After attending the conference call back in Jan 07 ( see Flashback January 2007 ) even the dumbest outside Wall Street could have predicted this outcome. Here is more from Mish . Mish has done another update WaMu Raises Cash, Skeptical Eyebrows

Denke Homer oder Paris Hilton hätten das besser hinbekommen....... Traurig aber wahr! Jeder der wie ich im Januar 2007 ( siehe Flashback January 2007 ) sich den Call angetan hat konnte genau das vorhersehen. Voraussetzung natürlich man arbeitet nicht an der Wall Street......Hier gibt es mehr von Mish . Hier ein weiteres lesenswertes ein Update WaMu Raises Cash, Skeptical Eyebrows von ihm.

Flashback January 2007

On Jan. 3, 2007, the company entered into an accelerated share repurchase agreement with a dealer, buying back $2.7 billion of its common stock ( Stock close to $ 40 )

Fast forward April 2008 Washington Mutual Gets $7 Billion From TPG-Led Group

Wahington Mutual the largest U.S. savings and loan, got $7 billion from a group of investors led by David Bonderman's TPG Inc. after losses on subprime loans ate up capital and erased 74 percent of its market value.

Washington Mutual sold 176 million shares at $8.75 a piece, 33 percent below yesterday's closing price on the New York Stock Exchange, and preferred shares, the company said in a statement today

Bravo!

It will be interesting to see how long this infusion will last......

Bleibt abzuwarten wie lange diese Kapitalspritze vorhalten wird......

I Want My Buyback Back "Washington Mutual Edition"

Today this news is making headlines

Heute kommt diese Schlagzeile über die Ticker

WaMu to Raise $2.5 Billion in Additional Capital, Reduce Dividend, Resize Home Loans Business and Cut Expenses to Fortify Capital Base

Flashback January 2007

On Jan. 3, 2007, the company entered into an accelerated share repurchase agreement with a dealer, buying back $2.7 billion of its common stock ( Stock close to $ 40 now $ 19)