Stockchase Opinions

Jonathen Wellum, B. Comm, B. Sc Washington Mutual Inc WAHQE-Q2 HOLD Jun 23, 2006

An exceptionally well-run bank. Have a big exposure to the mortgage market and big lenders to the real estate market in the US. There could be some bumpy days ahead of them. A very attractive takeover candidate. Nice dividend.
$44.510

Stock price when the opinion was issued

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DON'T BUY
4.8% dividend. A very well run bank. There is potentially some problems in the housing market. Hasn't moved much in the last year.
DON'T BUY
Coming close to some key support around $42. If it breaks through, it could potentially move back to the $35 area of October/05. Very leveraged to the mortgage market and the US housing sector is weak.
SELL
Great branch network. Because of its big concentration on home mortgages, it is not the right place to be. Wonderful dividend yield. Why be there with the currency factor?
SELL
More bullish on the brokers than on banks. T-bill market in the US has had big demand so rates have gone down about 2%. This has created value in financials. His model price is $48.33, a 26% positive differential. As the T-bill market gets back the interest rate will go up. Financials will be a hard group in the next couple of years.
SHORT
Very concerned about regional banks in the U.S. Housing situation is far from at a bottom, we’re going to see increased defaults on credit cards and on mortgages. More of a mortgage lender than more banks so will suffer more. Not a bad short. Easily go down to $20.
SELL
Involved very much in the mortgage market in the US.
COMMENT
Caught up in the mortgage mess in the US. Thinks it’s all right but hasn’t spent the time looking at it. You’ll have to do your work on this to see how affected their mortgage business is.
DON'T BUY
Cut their dividends. Highly leveraged to the mortgage industry.
WAIT
Recently went on his Stock Watch list, which has over 200 companies. Once he finds a company, he doesn't go in for at least 6 months. Could be a Buy towards the end of the year when tax loss season is down. He wants to see that there is stability in the stock price and that the company will survive.
DON'T BUY
His best guess is that a year from now it will not be around.