Would you buy WaMu stock now?

Question

WaMu closed down 35% today to 3.23 a share. Is this as low as it's going? Would you load up now?

Answer 1

No, a thousand times no.   More financial institutions are set to fail.  In fact, have to fail to bring health back to the financial industry status post mortgage crisis. There are worse choices than WM; but, I would not jump in.  You can wait for at least a week.  There is going to be no V shaped turnaround in any of the names in this sector.  I would move up the food chain to JPM.   Or better still dig up a commercial real estate financial servers.  I own a REIT.  Think that is a better place to put new money.  The price of $3.23 is what WM is worth here on July 14, 2008.  It is like a car with a sign "For Sale, $323.00."  Maybe, it does not have motor but clearly the market is setting the price at what it warrants today.

Answer 2

i wouldn't buy above 1.50

Answer 3

Ahhh, no way Dude. Just wait for the Feds to come with a padlock in there hand and no key. If your lucky you can be on the 6 o'clock news with the other schmoes waiting in line trying to get your money back. Stay out of financials,  try health care .

Answer 4

buy low

Its half of what you need to know to be a successful investor.

Think about this. If you buy 200 shares, at $3.23 each, you'll have less than $700 invested. If you lose $700, it won't break your portfolio, but if WAMU goes back to $30.00 per share in the next few years, you'll make about $5000

Answer 5

I wouldn't buy any WAMU stock, and would consider turning it down if someone gave it to me as a gift.

The reason?  WAMU quite arguably, has the worst CEO in the history of banking.  This in turn is going to get them de-listed eventually.

The only reason why it will increase and decline over the next couple months,  is so that people can cover there "short" positions.  In addition, Mutual fund companies have to keep there fund in line with the prospectus.  

Again, steer clear away from this company.  It is quite possible that they will be bought, but you probably won't be able to recoup any monies from it.  Unless you hold it for approx. (1) CEO gets fired or (2) You don't plan on selling this holding for the next 20-25 years.

I hate it.

My opinion though.

Answer 6

If the stock is trending down it is likely to keep going down.

Answer 7

Because it may be at a bottom?

Answer 8

I would.  There is little downside.  Their break up value is higher than the stock price.  Banks are writing off billions in real estate debt and are overestimating their write offs now to get it off their books. Real estate is still one of the most solid investments a bank can make and despite a large amount of stupid loans, this bank is here to stay.

Answer 9

You should buy wamu at $2.00 per share. it may seems like they are gonna go bankrupt but a private equity firm will the buy the company.

Answer 10

It is most likely to lower if you buy the stock be sure to buy the put options along with it. This will sort of give you an insurance policy that you won't lose all of the money invested.

Answer 11

Credit derivatives and the mortgage crisis are driving the entire financial sector down, but some banks and brokerage houses are more exposed than others. WaMu is one of those, hence the low price. Ya pays your money and ya takes your chance - but sometimes ya get what ya pay for.

http://www.bankrate.com/brm/safesound/th...

Answer 12

I would buy at 50 cents a share.