I've written in the past about a speculative stock, wamuq.pk. It's the common stock of WAMU, the nation's largest savings and loan seized more than 18 months ago by the FDIC and sold for a pittance to JP Morgan. It appears the wheels of justice are beginning to turn.
Today the bankruptcy judge handling the case was supposed to rule about a four billion dollar deposit WAMU's holding company had in reserve in an account surprisingly enough with JP Morgan. The holding company wants its money back and of course JP Morgan doesn't want to fork it over. Surprisingly the lawyers for WMI, the holding company, asked to delay the ruling for another week because both parties apparently close to reaching some sort of "understand", ie; settlement. The news sent the common stock up 20 percent.
The stock at 33 cents is still a bargain if and this is still an if, JP Morgan does settle and pay for the true value of WAMU. The likely outcome is some sort of stock swap. A one for one deal would bring a massive windfall. JP Morgan stock is currently more than 40 dollars a share. The next week should be interesting. Here's to a settlement!
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