Shawn Ayromloo

Dividend Cuts: Time to Sell?

As isherlock has indicated, I, too, am unsure what the qualifications are to become an article contributor on Seekingalpha, but the amount of articles with unsoliciated buy/sell advices amazes me.

The following is one article written a few weeks before WaMu was stolen by FDIC and given to JP Morgan for almost nothing (1.9 billions) - leaving the shareholders with nothing:
WaMu: Intensification of Stealth Buying
by: R.J. Chopin August 13, 2008 | about stocks: WM
R.J. Chopin
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Stealth buying intensifies as 54 new institutional investors quietly acquire shares of Washington Mutual (WM), according to NASDAQ Detailed Institutional Holdings. That’s an astounding 567 institutional investors now holding 52% of the company. Toscafund Asset Management LLP, a British based value player, reportedly snatched up 105.5 million shares, or a 6% interest. Spotting stealth activity requires painstaking analysis. The majority of investors fail to recognize stealth activity until it’s publicly disclosed. The wholesale accumulation of WaMu shares trumpets a clear “Buy Signal.”

WaMu used this past quarter to come clean, cleanse the books, or as Howard Shapiro of Fox-Pitt Kellton put it, “move ahead of the curve on credit, having charged off or provided for 65 % of it expected loss exposure.” WaMu added over 17 billion dollars of fresh capital, enhancing the balance sheet with 50 billion dollars of liquidity. This was not done out of necessity, but more in a sense to silence the mouths of its adversaries that are mostly short sellers that traffic in fear, terror, false rumors, and manipulation.

WaMu’s house keeping has positioned the company to report better than expected results in the next quarter. This will no doubt come as an overwhelming surprise to those that have been seduced by short sellers, but nevertheless, it’s going to be an eventful day. To say that short sellers will be caught unaware is understating the reality of a panic short-cover rally.

The undeniable facts are plain to see. The intensification of stealth buying will only continue. Short sellers can and will lie about

Bank Insiders Made Out Like Bandits

The article could have been useful during the years that the public were being ripped off, not now. In fact, its publication can now be harmful - because buying WM around $4 a share should now be encouraged rather than discouraged. Even the charts show less selling activities during recent months and increased buying efforts.