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  • The Lowdown on Citi / Wachovia [View article]
    What is WB worth with a rescue plan?

    If you subtract $42B (citi's loan loss estimate*) from WB 6/30 equity of $75B, you get $33B. Then subtract preferred stocks ($2.3 + 3.5 + 4.025 = $9.825) and you're left with $23.175, which is about $10.85 per share.

    WB shareholders could try to hold out for $10 - 11 via a rescue plan or take $7 in the stock of a company with very capable management. Fortunately, we don't have to decide right away.

    *According to Siddarth Dalal's initial post, $42B = 14% of $300B mortgage loan portfolio and 35% of $120B option arm portfolio. IMHO, these are probably pretty good estimates of what WB could expect in the way of discounts in a rescue plan.
    Oct 03 13:15 pm |Rating: 0 0 |Link to Comment
  • The Lowdown on Citi / Wachovia [View article]
    So, if the rescue plan passes, what is the "Old Lady" worth? $20 per share? If the House shows some sense, we should find out.
    Oct 01 22:03 pm |Rating: 0 0 |Link to Comment
  • The Lowdown on Citi / Wachovia [View article]
    Has anyone done a pro-forma on what WB might look like without Citi buy-out, and with a rescue package?

    Could the failed rescue package have been designed with the Citi buy-out as a condition or assumption?
    Sep 30 09:58 am |Rating: 0 0 |Link to Comment
  • The Lowdown on Citi / Wachovia [View article]
    1) Citi press release says payment will be in stock. Will WB hold it or will it be distributed to shareholders?

    2) I see the comparison to Merrill, whose book value was $35 million at 6/27/08. WB book value was $75 million on 6/30/08. What will it be after sale of banking assets?

    3) I recall Wm Goodwin, a director bot 1 million shares at $11 on 9/17 and John Baker, director, bot 25,000 at $12. Does anyone have comments about Goodwin's buy? He seemed to have seen value at $11.
    Sep 29 15:46 pm |Rating: 0 0 |Link to Comment
  • The Lowdown on Citi / Wachovia [View article]
    How did you arrive at your estimate of the value of what's left?


    On Sep 29 12:55 PM Ishortyou wrote:

    > Well you just said it, now that Wachovia got rid off all the JUNK
    > and debt is not difficult to guess that what the book value they
    > have now is worth much more to what it was before, no more uncertainties
    > and toxic on waste, with the rest of the business looks like Merrill
    > Lynch without the toxic waste so if I have to guess its stock is
    > worth around 25-40 dollar range, plust not to mention that has a
    > good CEO like Steel who was a good manager in mutual funds....lol...interes...
    > times indeed.
    Sep 29 13:43 pm |Rating: 0 0 |Link to Comment
  • The Lowdown on Citi / Wachovia [View article]
    I still have some WB left from years ago. I was wondering if Ishortyou could explain the estimated value of what's left. Thanks.
    Sep 29 13:20 pm |Rating: 0 0 |Link to Comment
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