:)
good move, (of the non-hasty type)
WaMu Estimate Cut by Goldman; Short Sell Recommended (Update1)
By Andrew Frye
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April 11 (Bloomberg) -- Washington Mutual Inc., the largest U.S. savings and loan, had its earnings estimate cut by Goldman Sachs Group Inc. analysts, who recommended selling the shares short. The lender declined 5.9 percent in early trading.
Washington Mutual will probably lose $3.30 a share this year, Goldman Sachs analysts, including New York-based James Fotheringham, said today in a note to investors. Goldman previously forecast a 2008 loss of $1 a share for the Seattle- based company.
The lender raised $7 billion this week from a group of investors led by David Bonderman's TGP Inc. after losses on subprime loans ate up capital. Washington Mutual may have a total of $23 billion in mortgage-related losses, Goldman said today. The firm cut its 12-month price target on shares of Washington Mutual, also known as WaMu, by 17 percent to $10.
``Given WaMu's disproportionate exposure to states'' where home prices are forecast to decline, Goldman expects losses between $17 billion and $23 billion, the analysts wrote.
To contact the reporter on this story: Andrew Frye in New York at afrye@bloomberg.net
Last Updated: April 11, 2008 08:13 EDT |
