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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (28612)	10/18/2007 6:41:51 PM
From: Madharry	Read Replies (1) \| Respond to of 78702

To me there seems to be a disconnect between how well the market is doing overall and the economic situation in the united states. I bought nov. SPY out of the money puts as portfolio insurance. I have no idea what the right price is but it seemed cheap enough to me.

To: Paul Senior who wrote (28612)	10/18/2007 7:29:05 PM
From: Madharry	Respond to of 78702

yep i went fishing for yield with RAS and ended up falling out of the boat. Im a little more cautious now. Im gonna wait at least until december to go fishing again.

To: Paul Senior who wrote (28612)	10/19/2007 12:07:56 AM
From: Spekulatius	Read Replies (2) \| Respond to of 78702

Wamu, the problem are not the customers doing transactions, the problem are the customers not doing transactions any more <g>. looks like WM needed a cool billion$ in a hurry. price is somewhat steep with 9.75% interest: reuters.com Wm credit situation is worse than I expected. I estimated before that WM can add more than 500M$/quarter to loan loss reserves and still be OK. It looks now that this tidy sum is not enough, for the last quarter they added almost 1B$ to reserves. I think that based on the above the streak if dividend increases has to come to and end. A dividend cut is quite possible if they have another 2 quarters like the last. i do not think that WM will go under but i think they will have to stretch quite a bit to stay afloat.