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

To: E_K_S who wrote (31968)	9/11/2008 11:54:28 AM
From: Madharry	Read Replies (1) \| Respond to of 78548

ive been taken to the cleaners on this one too. Clearly Mr. market agrees is saying that their is a very high risk of survival to washington mutual. I an not one of those people in the know as to what will happen here. However I do think that this is a company with salable assets, and on top of that they have access to the fed discount business. So my bet though smaller is that the company survives. However, Its certainly possible that they cut or stop paying the dividend on the preferred, especially after fnma and freddie mac are doing so. Philosophically though, the question is what is the likelihood that wm goes down the tubes vs. it survives with the preferred intact. so for example if survival is 50/50 meaning if it fail you lose all your money but if it survives you make 4 times your money is it a value proposition or not?

To: E_K_S who wrote (31968)	9/11/2008 4:27:34 PM
From: Dale Baker	Respond to of 78548

If you are shopping for pfds, IDG yields 9% at the current price with an investment grade rating and no WM-style problems on the balance sheet since ING is 80% global insurance and has only a small US banking arm, ING Direct. Just FYI.