WaMu: Only for the Bravest of Investors

4/8 - "The $5 billion investment will significantly dilute the value of the current shareholders’ stake in the company, but after seeing the stock’s value plunge more than 70% in this crisis already, shareholders are unlikely to be upset if the infusion helps WaMu weather this storm...That being said, there is still a lot of risk involved in the deal as WaMu is heavily impacted by the troubles in the mortgage market, especially in some of the hardest hit regions such as California and Florida."

"Ockham Research is maintaining a Hold rating on WaMu stock...assuming that WaMu survives this mess, the stock may represent a good value at current price levels. However, there is enough uncertainty about their survival that WaMu share’s are only suitable for the most stout-hearted and patient investors."