Washington Mutual Inc (WAHQE-Q2)

DON'T BUY
Reducing their weight on US financials and moving into techs. Earnings have dropped. Have a model price of $44.
HOLD
Has made a few mistakes in its hedging policies. If 10-year treasury moves up to 5% by year-end, their results will be poor.
BUY
Has had a big correction so a good time to buy.
PAST TOP PICK
(A top pick Dec 12/03. Up 12%.) Likes the long-term. One of the fastest-growing retail banks. These 4% dividend yield.
TOP PICK
Has been hit hard in the last week or so because of reduced earnings estimates. Making a lot of money off of mortgage refinancing.
TOP PICK
(A past top pick Sept 26/03. Up 1.3%.) Has gone from the massive refinancing boom in the US into servicing revenues on mortgages. Long-term, a powerful cash flow generator.
DON'T BUY
Just announced they are going to miss their earning numbers this year. Going to reduce staff. Stock has dropped. Mortgages are not what they were and rates will go up sometime.
DON'T BUY
Generates significant earnings. Higher interest rates and higher mortgage rates could slow down their business.
DON'T BUY
Pay their top brass too much. Usually, for him, that is a signal not to buy.
STRONG BUY
Has a price to earnings of 10. Great return on equity. Dividend of 3½%. Have been doing some very good things in marketing recently. Still has a fair valuation.
BUY
Well respected. Excellent customer service.
TOP PICK
One of the best retail banking franchises in the US. Over 4% dividend yield. Trading at nine times earnings. Growing organically.
DON'T BUY
Still likes this company, but with the falling US dollar, sell and move into the Canadian sector.
WAIT
A great bank, but prefers Wells Fargo. Nice dividend. Mortgages may slow down.
DON'T BUY
A decent company. Growth is by acquisition. Thinks the mortgage market is tapped out, so difficult to earn a spread.
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