AboutPaul Henneman Expertise Stock forecasting and fair market valuations.
Experience
Past/Present clients CBSMarketwatch.com, Hoovers.com, Multexinvestor.com, Bank of NY, numerous hedge funds and institutions, other partners and clients can be viewed at http://www.valuengine.com/about/careers.html
Question My mom held on to several thousand dollars of WAMU stock (now WAMUQ). It is only worth $100 or so now at .04 a share. It doesn't seem worth selling if there is any chance it will grow in value down the road.
Do you know what will likely happen to WAMUQ? If it will dissolve to nothing or can it possibly come back up. She bought it at around $4.00 a share. Should she we just sell it, or is it worth holding onto? Thanks
Answer Richard,
Thank you for your question! Yes, this stock certainly has been a terrible one, like most financial stocks these days.
It if possible that the stock could be come worthless, but it is more likely that there will be some sort of recovery. Washington Mutual is simply too big of an organization to go under, JP Morgan Chase has purchased the company. This bank is on firmer footing, and when you combine the two banks deposits, they are the largest bank in the country. They are certainly in the "Too big to Fail" category, meaning that the government will be forced to bail the bank out of trouble if it needs it.
To sell at $100 would not be worth it. You now only risk $100 in capital to hold on to the stock. It make take a long time, but the financial industry will come back. It is the foundation of our economy and what capitalism is based on. There is no downside to hold on to it and see what happens. Be patient, it may take a few years.
Sincerely,
Paul Henneman
President
ValuEngine Inc
www.ValuEngine.com
