KKR's next $1B deal could be from WAMU shell


Characterizing WMI Holdings (WMIH +1.7%) as a "KKR special purpose acquisition vehicle," hedge funder Stephen Errico, thinks the P-E firm will move ahead with acquisitions which can utilize WMI's nearly $6B in tax loss carryforwards.

WMIH is more than a double since KKR in December announced plans for a strategic investment in the firm, and last month closed on the purchase of convertible stock, committed to buying a chunk of subordinated debt, and received 5-year warrants to purchase common stock.

"Expect acquisitions to be announced sooner rather than later," says Errico, calling WMIH a small cap, speculative way to invest alongside KKR.

Comments (4)
  • 96815234
    , contributor
    Comments (2239) | Send Message
     
    I'm in, and would love to hear about more ideas like this...
    13 Feb 2014, 03:43 PM Reply Like
  • T1215s
    , contributor
    Comments (4) | Send Message
     
    Did Cramer load up already and is now selling ????
    13 Feb 2014, 05:55 PM Reply Like
  • spriti
    , contributor
    Comment (1) | Send Message
     
    Rallytime!!!!
    14 Feb 2014, 09:41 AM Reply Like
  • Pipeline Guy
    , contributor
    Comments (11) | Send Message
     
    That was written almost a year "ahead of its time". This week it is a reality (finally). Can one still buy on Monday to ride the rocket ship up, or will it gap up so high that new investors will be priced out ? I have seen it jump 50+% in one day before.
    21 Dec 2014, 12:29 AM Reply Like
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