Reorganized WAMU stock holders

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letsinvest
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Joined: Thu Jul 28, 2011 1:30 pm

Reorganized WAMU stock holders

Post by letsinvest » Sun Feb 05, 2012 5:20 pm

I own 9000 stocks (20K worth before the bankruptcy) of WAMU which is worth $300 now. I recently received a ballot form for a reorganized WAMU. I am not sure what it means currently for stockholders. Should I decline the ballot and show the losses in my tax returns or should I hold the stocks of reorganize WAMU? Please advice or suggest what should I do and what this reorganized WAMU means?

Thanks,
letsinvest

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stratton
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Location: Puget Sound

Re: Reorganized WAMU stock holders

Post by stratton » Sun Feb 05, 2012 5:56 pm

You're lucky the stock wasn't totally wiped out which is typical in bankruptcy.

Tiny shred of bankrupt WaMu emerging to uncertain future
More than three years after Washington Mutual became the nation's largest bank failure, a thin sliver of the company could soon emerge from bankruptcy and offer shareholders a small chance at recouping some value.
Paul
...and then Buffy staked Edward. The end.

letsinvest
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Joined: Thu Jul 28, 2011 1:30 pm

Re: Reorganized WAMU stock holders

Post by letsinvest » Sun Feb 05, 2012 7:00 pm

stratton wrote:You're lucky the stock wasn't totally wiped out which is typical in bankruptcy.

Tiny shred of bankrupt WaMu emerging to uncertain future
More than three years after Washington Mutual became the nation's largest bank failure, a thin sliver of the company could soon emerge from bankruptcy and offer shareholders a small chance at recouping some value.
Paul
Thanks Paul. I had read this article but there is not a conclusive answer. I was hoping for some decision here.

neophyte27
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Joined: Mon Feb 06, 2012 10:15 am

Re: Reorganized WAMU stock holders

Post by neophyte27 » Mon Feb 06, 2012 10:18 am

vote yes on new plan of reorganization if you hope to get any value back. opt in to grant releases. hurry deadline is soon. check with your broker. no vote. no new shares in new company

neophyte27
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Re: Reorganized WAMU stock holders

Post by neophyte27 » Mon Feb 06, 2012 10:37 am

Letsinvest,

Have you been following the proceedings with the Equity Committee and the various plans of reorganization? If not you have alot of catching up to do. Without action on this newest offering for a plan of reorganization, you will not be offered shares in the new company.

letsinvest
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Joined: Thu Jul 28, 2011 1:30 pm

Re: Reorganized WAMU stock holders

Post by letsinvest » Mon Feb 06, 2012 10:49 pm

neophyte27 wrote:vote yes on new plan of reorganization if you hope to get any value back. opt in to grant releases. hurry deadline is soon. check with your broker. no vote. no new shares in new company
If I vote yes, and later if I decide to sell shares of the new company when it is possible to do so, will I be able to offset the capital gains ($20K-new stock value)?

neophyte27
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Re: Reorganized WAMU stock holders

Post by neophyte27 » Tue Feb 07, 2012 6:39 am

i would imagine so

letsinvest
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Re: Reorganized WAMU stock holders

Post by letsinvest » Tue Feb 07, 2012 11:26 am

neophyte27 wrote:i would imagine so
Thanks for your suggestions, I will keep you posted on my decision

downshiftme
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Re: Reorganized WAMU stock holders

Post by downshiftme » Tue Feb 07, 2012 11:34 am

removed

flowerbuyer
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Location: Western Washington (state)

Re: Reorganized WAMU stock holders

Post by flowerbuyer » Tue Feb 07, 2012 7:00 pm

According to the documents I received, Feb 9th is the deadline for the company handling this to receive the signed documents.

letsinvest
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Re: Reorganized WAMU stock holders

Post by letsinvest » Wed Feb 08, 2012 12:14 am

flowerbuyer wrote:According to the documents I received, Feb 9th is the deadline for the company handling this to receive the signed documents.
I confirmed with my broker "ETrade", they told me that I can fax them by 8th EOD.

lazyday
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Re: Reorganized WAMU stock holders

Post by lazyday » Wed Feb 08, 2012 1:19 pm

letsinvest wrote:I confirmed with my broker "ETrade", they told me that I can fax them by 8th EOD.
I believe that the consulting company has to get the results by the 9th from your broker.

For all the - - - - I've heard about, and experienced with Etrade, have to admit that's really good of them to take a fax at the last minute, when they are only required to handle by mail with a few days to spare, generally with some weasel words that it's your responsibility not theirs.

I wish broker ratings by magazines and websites included how well each handles reorgs, to make sure individual investors don't miss quick turnarounds like this one and lose value or suffer dilution. For me it's one of the most important services of my broker, but seldom mentioned and never touted as a competitive advantage. For example, I'd pay more for a broker that emailed me when there is a reorg, and if I don't respond and time is coming up, repeat email or robocall me.

Sorry--back to Wamu... For anyone who misses the deadline, should it not be extended, there's a news article somewhere with a quote estimating the value of the shares between 3 and 4 cents each--in that case, no huge loss depending on # shares you have.

I'm not sure if that estimate assumed the 5+ Billion dollar tax loss would be somehow monetized. If a merger with another bank or financial institution could be arranged that the irs wouldnt reject, especially a company with a high corp tax rate, then the value of the 5.1 B could be quite large, maybe 1.5B?

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