Feliciano

WaMu Shareholders Left Out in the Cold, Again

Evening,

Well, I made a crutial mistake today. I bought WM stock at the close of business. Yes, I knew it was a risk, but it was a gamble. Now, I am left with wondering what now? What happens when the company is taken over by the FDIC and sold to Chase? Does WM still exist? FDIC make a new stock ticker for IDMC Bank. They went up 200% the other day? How does this madness work? I bought it on stocktrade. Thank you for you help and advice.
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On Apr 09 01:20 PM drmalaka wrote:

> I agree that this is a bad deal for a WM shareholder but if you are
> a WM shareholder you deserve what you get. You have a great opportunity
> to sell today well above the 52 week low, so do it. Then again, anyone
> dumb enough to be holding this stock is the same person who thinks
> that when a bank raises capital it is good news. Step two: perhaps
> you should figure out why they had to raise capital?????
>
> This is horrible news for shareholders, it is an admission that this
> bank is in crisis mode.
>
> The risk to the investors is not as great as one would think. They
> received mostly notes and preferred stock, which if you equate this
> to the BSC scenario, would be pretty much guaranteed by the government.
>
>
> So the investors will watch the stock they got stuck with go down
> as their notes and preferred keep getting paid dividends and interst.
> Several years from now perhaps the stock gets back up to $10 so overall
> the investment works out great for them.
>
> Common shareholders beware. This is a cash infusion that is only
> positive for the new investors. It is horrible news for current investors.