As you know, “The Fly” is short [[WM]], from as high as $18.50. I read over the terms of today’s 7 billion dollar financing and it’s ridiculous.
First of all, they are pricing a gigunta amount of shares significantly below the market @ $8.74. Selling WM here is equal to taking on the arduous task of shooting fish in a barrel.
Once again, all of the private equity rumors were inflated. TPG anchored the deal, but only took down 2 billion worth of Wamu crap.
Additionally, Wamu will be forced to change the way the bank raises money. They will be forced to shut down all wholesale mortgage operations, and refocus on retail, in an attempt to stop the bleeding.
In other words, Wamu will never be the same again.
With all of the dilution in the stock, I like my chances of covering my short position, under $10.
iBC Call to Arms UPDATE: A staunch internet ally of mine, Howard, is up for some sort of mundane internet award, for one of his Wallstrip shows. Frankly, I do not care for much, with the marked exception of 2 1/2 inch rib eyes. However, I care a great deal about “mundane internet awards.” It’s one of “The Fly’s” weaknesses.
In short, go vote here tomorrow. Do it for Howard. Do it for your country. More importantly, do it for “The Fly.”
NOTE: Failure to vote for this important matter may result in the removal of your mustache, the next time you are drinking a glass of Merlot.[youtube:http://www.youtube.com/watch?v=p5d-lWyhy5M&eurl=http://www.howardlindzon.com/ 450 300] If you enjoy the content at iBankCoin, please follow us on Twitter