I'm writing an EULOGY to WaMu, which has helped me made very decent money in 07 and earlier this year. May their bankrupt mortgage souls rest in peace.

This is an analysis I did 4 months ago before my vacation in Dec 01, 2007 that I made in Tickerforum.

http://www.tickerforum.org/cgi-ticker/akcs-www?post=18040

From Dec 01, 2007 post:

I did some work in Wamu's case.this is the odds per REAL delinquency data on their stuffs (option arm, arm, fixed, subprime, commercial) and what they disclosed in 10-Q:

There is:

75% chance the writedown is greater than $11 B.
50% chance the writedown is greater than $16 B.
25% chance the writedown is greater than $27 B.

Now compare that with the Book Equity value of 24 Billion $ (11/07)

They don't have to reach 24 B writedown for BK issues, 15-20 would suffice. .

Based on this, the stock value would have been $6-$10 - the 50% even odds at book value, assuming they don't shrink (yeah, right).The writedown is cash intrinsic value.

That's the value realized if they have the ability to hold them in balance sheet and not have to sell.If on the other hand they're ever forced to sell distress, there is NO floor. 10-25 cents on the dollar is the expectation, just like Etrade.

All of that has been realized. On March 07, 2008, I achieved the $10 Wamu price target I set in Dec and closed my remaining Wamu 15s - a bit early but I was satisfied!

http://www.tickerforum.org/cgi-ticker/akcs-www?singlepost=335166

There I said it and now am at peace with Wamu.

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Hahahahahahah, okay, ONE very last thing:

Actually, back when everyone was sucking Wamu's "high dividend" tits, I was as I recall, the FIRST to publicly assail it in SeekingAlpha.com, home of the sheeps on Sept 11, 2007:

Why-Wamu-Must-Confess

A week after this got published, there was a ruckus in the trading floor, and some of them printed this article and gave it to me. Of course, the name is an alias, and only a smile was appropriate for the occasion.