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Posted by: fsshon Date: Friday, August 20, 2010 4:48:37 AM
In reply to: Lebosco who wrote msg# 231274 Post # of 231348
Good Job Lebo, XOM, Clawman etc.. etc... It seems many of you have been hard at work, while I have been hard at play! I am almost done with my vacation and WAMUQ is performing exactly like I predicted it would 1.5 weeks ago. Now here is what is happening with the preferreds. Many have been speculating that the news is affecting the PPS of U's, but not the preferreds.
It's simple math. The anticipation from the newbies is here, the excitement from the short-termers is moving the stock. Most longs have locked in many moons ago and are riding along. Many longs will not flip this stock, because they know as soon as they do, the rocket they have been waiting on for over a year now, will launch off the pad and they will be left out. So most LOngs will not flip the stock. Some will flip a small portion (not their core) to make some extra change.
Preferreds are not very well known to the market. All Al Scott or WSJ has to do is tell the symbols of all 4 stocks for WAMU and BOOM they will all slowly start moving. Once a newbie comes on to the Hub, Yahoo, whatever and learns about the percentages and risks of each, they become informed and will make their selections. Longs are well aware of the preferreds, bonds and commons. However I have talked to some who are moving out of preferreds (partially) and going back into commons in anticipation of the Aug 27th runup (7 trading days before Spet 7th). Now if a Long sells some preferreds (especially 1 week ago) and bought commons with it, they would have made a good percentage of change on the run-up that could be used to increase preferred ratios or pocket some change. Longs will only move in and out and not completely out unless changes (in finances) warrant the need to exit with profits.
If you want the preferreds to go up, you have to alert the newbies of the series and the risks vs payout of each. If you want them to stay down, just keep very quiet (and hunt some bunny wabbits !!!)
I am in Portland until the weekend, then I head home. I have missed quite a bit in 3 weeks and will need to catch up after returning home. We will be in the midst of a new run by then.
We should see a serious gap tomorrow if the charts are gonna hold.
Good Luck and Great Job.. Thanks especially to Clawman !!!
~Fish~
Payout in order of risk..
WAHUQ (WMI Corp Bonds settled with Wells Fargo trustee $33.42 PPS) WAMPQ (Preferreds 1,000 payout) WAMKQ (Preferreds $25 payout) WAMUQ Commons (Highest risk) (Largest potential award).
MfG.L:)
"Ein jeder gibt den Wert sich selbst"
"Der Schein regiert die Welt, und die Gerechtigkeit ist nur auf der Bühne".(Parasit)
Und es herrscht der Erde Gott, das Geld.(An die Freude)