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Bottom Fishers Take Warning

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April 08, 2008 – Comments (5)

Story today with Merrill warning investors that financials are a "value trap" in that they look like they are under valued but there is no catalzyt for them to turn around and people are just realising the problem isn't just a US problem but in markets around the world.  I've been warning since January 07.

WaMu is a prime example, needing a $7 billion cash infusion.  This is massive dilution and all the new players have preferred terms to current shareholders.

5 Comments – Post Your Own

#1) On April 08, 2008 at 7:16 PM, nuf2bdangrus (< 20) wrote:

And the idiots buy.  Will work only with devalued dollars.

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#2) On April 08, 2008 at 8:24 PM, EScroogeJr (< 20) wrote:

People who bought WaMu were not novice investors. They were vulture capitalists looking to pay 30 cents on the dollar. If they did not believe MaMu to be worth 20 dollars or more, we would never see this deal closed.

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#3) On April 09, 2008 at 4:11 AM, DemonDoug (93.05) wrote:

What about those vulture capitalists that put 10B into citigroup, and they are now down about what 20% on that investment?

Just because you have a lot of money it doesn't mean you are a smart investor.  It could very well mean that you were born into a family that happens to own land above lakes containing billions of gallons of oil.

How's that initial 1B investment in blackstone's IPO working out for china's SWF there escrooge? 

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#4) On April 09, 2008 at 9:45 AM, dwot (97.49) wrote:

Didn't Thornburg just put $620 million into investment in the summer and get completely wiped out last monty.  Those weren't novice investors either...

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#5) On April 09, 2008 at 9:45 AM, dwot (97.49) wrote:

month

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