By the way, they lost SEVEN TIMES this in Q2 alone.
Nobody BOUGHT $500 million in stock (they actually paid much more than that!) I chose the headline for the story to get more people to read the real stories herein.
This ‘investor’ now owns around $500 million at today’s price, but this is not their first buy. They are significantly underwater in their total WaMu trade. The only reason I even care about this story is because of the irresponsible ‘journalism’ by CNBC for an hour calling this deal ‘incredible’, speculating about how great this is for WaMu and flashing ‘Alerts’ every other minute. If shorts get penalized for stock market manipulation, why aren’t actions like this punished?
Today’s relentless cheerleading coverage of this non-event was not only irresponsible but lacked research and any sense of understanding of the stock market and how larger investors operate. This fund added to their underwater position, which triggered an SEC filing. Simple.
It is actions like this by the press that hurts all investors, especially those buying the stock on the breaking hype in most cases. In trying to uncover a story first and always presentING the ‘glass half full’ they did their best to make this sound as if this was a game changer for WaMu. This spiked the share price for 15 minutes and everyone who chased the stock up were red by the end of the day.
This ‘news’ means absolutely nothing. WaMu does not get one penny. Toscafund is already in WaMu. They bought at a much higher price in the past and as part of the $7 billion capital raise a few months back. They did not buy 105 million shares today, yesterday or even last month.
“Tosca has had poor performance, falling by more than 15 per cent in the year to the end of May thanks to a bet that banks and housebuilders would recover. But three investors said they expected losses from Wednesday’s sharp share price moves to be at least partially offset by successful short positions held by the fund. “It looks like they are taking a big beating, whatever the reason is,” one said.
Shares hit badly where Tosca is known or thought to have a large stake include Aberdeen Asset Management, Royal Bank of Scotland, Redrow and Taylor Wimpey. Redrow fell almost 19 per cent, Aberdeen and RBS lost 9 per cent and Taylor Wimpey 19 per cent. But one holding, Amec, rose slightly.”
Even if WaMu were to get all of this whopping $500 million (this is not the case), they LOST SEVEN TIMES that in the last quarter alone. Dozens of other funds including Tosca have invested $10S of millions or more all the way down from $40.
CBNC has turned into a no substance variety show that is only out to get a response with shock and awe headlines that mean nothing. Sorry for the rant, but what is going on is absolutely irresponsible ‘journalism’ that should not be taken seriously.
The constant misreporting of events to spin them into something they are not is just as bad as negative rumors. I am not short WaMu but may enter via puts if it goes any higher.
If you want the TRUTH on WaMu read these:
-Best Mr Mortgage
DOW JONES NEWSWIRES
Toscafund Asset Management LLP on Thursday reported holding a 6% passive stake in Washington Mutual Inc. (WM), according to a Schedule 13G filed with the Securities and Exchange Commission.
Toscafund beneficially held about 105.5 million shares of Washington Mutual as of July 16, Thursday’s SEC filing said.
Toscafund also reported holding a 5.1% passive stake in Sovereign Bancorp Inc. (SOV), according to a separate filing Thursday.
The stakes were reported on forms for passive investors, or those who don’t seek to change or influence a company.
Shares of Washington Mutual, the nation’s largest thrift, were trading Thursday afternoon at $5.12, up 38 cents, or 8%. Shares of Sovereign Bancorp were trading at $9.69, up 7 cents.