Stock Alert for Washington Mutual Inc. (WAMUQ)*
  • Stock Alert for Washington Mutual Inc. (WAMUQ)*
  • Stock Alert for Washington Mutual Inc. ($WAMUQ)
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    Stock Alert for Washington Mutual Inc. (WAMUQ)

    Washington Mutual Inc. (WAMUQ) is a consumer and small business banking company with operations in United States markets. The Company is a savings and loan holding company. It owns two banking subsidiaries, Washington Mutual Bank (WMB) and Washington Mutual Bank fsb (WMBfsb), as well as numerous non-bank subsidiaries. The Company operates in four segments: the Retail Banking Group, which operates a retail bank network of 2,257 stores in California, Florida, Texas, New York, Washington, Illinois, Oregon, New Jersey, Georgia, Arizona, Colorado, Nevada, Utah, Idaho and Connecticut; the Card Services Group, which operates a nationwide credit card lending business; the Commercial Group, which conducts a multi-family and commercial real estate lending business in selected markets; and the Home Loans Group, which engages in nationwide single-family residential real estate lending, servicing and capital markets activities.  In September 2008, the Company filed for Chapter 11 bankruptcy.WAMUQ was founded in 1889 and is headquartered in Seattle, Washington.

    Share Statistics (24-May-11)
    Symbol WAMUQ
    Current price $0.10
    52wk Range: $0.04-$0.24
    Avg Vol (3m): 4,995,220
    Market Cap. 174.18M
    Shares Outstanding 1.70B

    Source: Reuters.com, SEC Filings.

    Investment Highlights

    Shares of WAMUQ declined 5.96% in Tuesday’s trading, giving up gains made in the previous session on news of post-bankruptcy control settlement.  WAMUQ, the holding company that owned Washington Mutual Bank, yesterday said it has reached a tentative deal with shareholders that could bring the Company closer to exiting bankruptcy.

    The bank holding company filed for bankruptcy in September 2008 after the Federal Deposit Insurance Corp. (FDIC) seized its flagship bank and sold its assets to JPMorgan (JPMC) for $1.9 billion.

    Reuters reported that the plan calls for shareholders to have control of the reorganized Company that exits bankruptcy, according to WAMUQ attorney Brian Rosen.  At a hearing in the U.S. Bankruptcy Court in Delaware, Rosen said the organized Company will be a reinsurance business with a value of $160 million

    It was also agreed that a group of four hedge funds, known in the bankruptcy as the settlement noteholders, will provide a $100 million credit facility to the reorganized company so it can pursue acquisitions. WAMUQ is expected to have valuable tax breaks that could be used to offset future profits, Reuters said.

    Rosen said WAMUQ will file a new bankruptcy plan based on the tentative deal with shareholders by the end of next week.  He said he hoped the Company would exit bankruptcy by the middle of August. “This was a tremendous, positive step, and we now have a tentative settlement among all these parties,” Rosen told Judge Mary Walrath.

    WAMUQ stated that it is pleased to have reached the tentative settlement agreement, which is an important step toward completing the Chapter 11 process.  It said it looks forward to distributing over $7 billion to the estate’s parties-in-interest upon confirmation and approval by the bankruptcy Court.”

    WAMUQ’s exit plan is the subject of a confirmation hearing set to start on June 29.

    WAMUQ shares closed Tuesday’s session at $0.10 on heavy volume of over 57 million shares. Over the past 52-weeks, the stock traded within the range of $0.04 – $0.24. It is currently trading above its 50-day moving average of $0.05 and above its 200-day moving average of $0.05.

    Source: Reuters

    Financial Summary

    Financial Strength (24-May-2011) Company Industry Sector S&P 500
    Quick Ratio (MRQ) 0.00 0.41 0.70
    Current Ratio (MRQ) 0.00 0.78 1.02
    LT Debt to Equity (MRQ) 117.27 52.15 82.30 149.57
    Total Debt to Equity (MRQ) 118.37 188.06 177.03 195.86
    Interest Coverage (TTM) 0.00 0.30 17.88

    Source: Reuters.com, SEC Filings.

    Analyst Consensus

    No analyst recommendations and revisions data available.

    Source: markets.ft.com

    Consensus Estimates Analysis

    # of Estimates Mean High Low 1 Year Ago
    SALES (in millions)
    Quarter Ending Dec-10 8 736.11 746.43 731.10 689.25
    Quarter Ending Mar-11 3 731.02 750.64 699.42
    Year Ending Dec-10 11 2,824.29 2,845.51 2,777.94 2,625.66
    Year Ending Dec-11 11 3,063.74 3,153.56 2,957.60 2,905.10
    EARNINGS (per share)
    Quarter Ending Dec-10 9 0.00 0.01 0.00 -0.00
    Quarter Ending Mar-11 4 0.00 0.01 0.00
    Year Ending Dec-10 8 -0.00 0.02 -0.02 -0.02
    Year Ending Dec-11 9 0.02 0.04 0.00 0.03
    LT Growth Rate (%) 1 30.00 30.00 30.00 30.00

    Technical Analysis

    Source: http://stockcharts.com

    WAMUQ is trading above its upper Bollinger Band. Relative to recent price action, the stock is currently overextended and due for either a pause or retracement.

    The MACD for WAMUQ currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    May24-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    Park National Corp. PRK 65.32 1.01B 13.78 11.56 2.93 2.81
    Meta Financial Group Inc. CASH 13.22 41.13M n/a n/a n/a n/a
    Home Loan Financial Corp. HLFN 14.00 19.78M n/a n/a n/a n/a
    Huntington Bancshares Inc HBAN 6.37 5.50B 10.80 9.37 2.09 1.99
    Mayflower Bancorp Inc. MFLR 8.65 17.98M n/a n/a n/a n/a
    PNC Financial Services Group Inc. PNC 60.64 31.91B 10.16 9.31 2.21 2.18
    Savings and Loans Median 15.52 n/a 2.14 n/a
    Washington Mutual Inc. WAMUQ 0.10 174.18M n/a n/a 0.01 0.01

    Source: Thomson Financial

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