WAMUQ - Washington Mutual

[Sculelos]

Originally Posted by dublbass

I'm new and encourageable... looks like I'll be selling off those CITGQ shares and transferring it over here. I didn't realize until after my original purchase that the decision had been made to eliminate all the shares. My fault for not doing research, and buying on a whim.

At least you can salvage your position, some people bought into LEARQ when it was cancelled last Monday and lost 100% of their investment. (Never invest in a "Q" stock without doing significant research first)

Q stocks are tricky business, most end like LEARQ or how MTLQQ will end but some end up like VRMLQ or how I think WAMUQ will end based off of many hours of research, court documents, court hearings and many other factors.

We got 100% to lose, 6,000% or more to gain... the risk might be too great for some but I am willing to accept total loss for the chance to have a very nice gain.

[Beamer]

Forgive me for being niave but if they are in chapter 11 and when they come out all the shares are whipped out why invest in them.

I must be missing something.. Please educate me. ty

[Beamer]

Bump

[Sculelos]

Originally Posted by Beamer

Forgive me for being niave but if they are in chapter 11 and when they come out all the shares are whipped out why invest in them.

I must be missing something.. Please educate me. ty

Quick rundown... they have many billions worth of lawsuits and other things in the works, just google them and look at the court hearings and docs for yourself plus look at the stuff I posted a couple pages back, all good stuff and all reasons why I'm in this.

[Beamer]

Thanks Sculelos I do see all good stuff. But I was curious if a company comes out of Ch. 11 does it wipe out the stock as someone posted.

That can't be true can it. ty

[USMC]

You can bet your underwear that the stock can be canceled.

Straight from the SEC if you have doubts.

http://www.sec.gov/investor/pubs/bankrupt.htm

Note: Investors should be cautious when buying common stock of companies in Chapter 11 bankruptcy. It is extremely risky and is likely to lead to financial loss. Although a company may emerge from bankruptcy as a viable entity, generally, the creditors and the bondholders become the new owners of the shares. In most instances, the company's plan of reorganization will cancel the existing equity shares. This happens in bankruptcy cases because secured and unsecured creditors are paid from the company's assets before common stockholders. And in situations where shareholders do participate in the plan, their shares are usually subject to substantial dilution.

Keep in mind, some believe WAMUQ will win the lawsuits, which will negate the BK. This is plausible if they win the lawsuit"s." Obviously, if the assets are more than the liabilities, there may be money for commons, but don't count on it. They could motion the Court to dismiss the Chapter 11.

[Sculelos]

Originally Posted by USMC

You can bet your underwear that the stock can be canceled.

Straight from the SEC if you have doubts.

http://www.sec.gov/investor/pubs/bankrupt.htm

Note: Investors should be cautious when buying common stock of companies in Chapter 11 bankruptcy. It is extremely risky and is likely to lead to financial loss. Although a company may emerge from bankruptcy as a viable entity, generally, the creditors and the bondholders become the new owners of the shares. In most instances, the company's plan of reorganization will cancel the existing equity shares. This happens in bankruptcy cases because secured and unsecured creditors are paid from the company's assets before common stockholders. And in situations where shareholders do participate in the plan, their shares are usually subject to substantial dilution.

Keep in mind, some believe WAMUQ will win the lawsuits, which will negate the BK. This is plausible if they win the lawsuit"s." Obviously, if the assets are more than the liabilities, there may be money for commons, but don't count on it. They could motion the Court to dismiss the Chapter 11.

It is absolutely a gamble, which is why I suggest no-one bet with anything they don't want to lose.

Huge risk = Huge reward if it plays out right. I am a gambler, you may not be.

[Sculelos]

Something I wrote from a different board.

Sure looks like it, at best the "Bank" bondholders will see 6.7 Billion in total which will cover "Bank" bonds 100%.

So if it's found WMB was solvent they where worth at a minimum 26 Billion, JPM paid 1.9 Billion for the bank, so they may have to pay 2x damages or 52 Billion, in such case I believe Washington Mutual Bank bondholders will be paid, but probably by the FDIC since it is illegal to seize a solvent bank and thus they would be liable for it.

If WMB is found to be insolvent then the FDIC and JPM action was legal although damages could still be sought, in that case if JPM pays more for the bank the bondholders should still see money, when WMI get's their deposits + taxes back it should have enough to cover creditors and the remainder would go to WMI bondholders with prefered share holders in the pecking order after that.

My numbers both ways.

If WMB was found solvent, everyone will be paid and commons should be worth at least 16$/share

If WMB was found insolvent, and JPM was still ordered to pay more for the "Bank" WMB bondholders will be paid first with the remainder going to WMI, WMI has their payment order as such.

1. Secured Creditors including the stock WAHUQ
2. WMI Bondholders
3. Preferred Shareholders, which are the K and P stocks
4. Commons which are the WAMUQ's.

If unsecured we could need as much as 18.22 Billion to cover all debts, bonds and preferred stocks. I'm guessing that at a minimum WMI will have at least enough to cover all "Their" bonds and at least partially the prefer-reds, under which case I believe the common holders may be kept intact when WMI leaves bankruptcy. Of course this is all considering if WMI was actually insolvent which I STRONGLY BELIEVE IS NOT THE CASE!

Thanks for reading. Boosted my holdings and now at 25.8K, just keep adding a little at a time until this thing is over, for better or worse.

[Sculelos]

This stock I believe will turn into a great play... I just might die waiting for it.

[Sculelos]

Next Omnibus hearing 11/24, I don't expect too much from it but we shall see, hope I am pleasantly surprised!