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Non-Tech : Bill Wexler's Trading Cabana -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (1796)	3/15/2007 9:19:35 PM
From: RockyBalboa	Respond to of 6370

S&P Downgrades Washington Mutual to Sell Plus: Analyst opinions on IndyMac Bancorp, Cisco Systems, and more Washington Mutual (WM) Cuts to 2 STARS (sell) from 3 STARS (hold) Analyst: Stuart Plesser We are concerned about Washington Mutual's exposure to the subprime market and believe the company will need to add more to reserves than has been expected. Roughly 9% of Washington Mutual's loans held are subprime, with a large portion having loan-to value ratios over 80%. In addition, roughly 28% of its loan portfolio is comprised of Option Arms, which we believe have not yet been stress-tested. We are lowering our 2007 earnings per share (EPS) estimate by $0.28 to $3.68, and cutting our 12-month target price by $11, to $37, 10 times our 2007 EPS estimate, below historical levels to reflect a difficult mortgage environment we see.