Llamafolio Purchase 3
So far I’m on a roll with Llamafolio buys. From my original $2000, I still have a cool $822.61 sitting around waiting for the right opportunity. Well today I see that opportunity - though it’s a massive risk. I’m just going to come out and say it - I’m buying Washington Mutual Stock. Good old WM - not a particularly risky buy last year. However, the stock is currently sitting at $13.61, with a 52 week high of $46.15 per share - so it’s off 70% - a massive drop. Click on the chart to the left for a bigger view.
It’s no secret that Washington Mutual has some issues - mostly stemming from the subprime mortgage fallout. There is more bad news to come, I’m sure. This crisis is far from over. However, I think much of the future bad news is already priced into the stock - I’d be surprised to see it drop much further from this point. So I’m going to put my money where my mouth is and invest in WM. 30 Shares sounds like a good number, in fact. The total share purchase will cost me $408.3 , plus of course the $4.50 commission from Zecco, for a total of $412.80. That will leave me with $409.81 remaining to invest.
Later on this week, I’ll be setting up a dedicated Llamafolio page, so that you can see each of my holdings and it’s performance all in one place. I’ll announce it in a post.
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January 8th, 2008 at 11:11 am
I took a look at BSC (Bear Sterns) to see if it was worth buying, but even at it’s current price, the P/E is above 50. WM has an excellent P/E showing it’s definitely undervalued…provided they start to turn around within the next two quarters or so.
January 8th, 2008 at 11:57 am
Yowza -P/E above 50. That’s a tough sell, no matter how good it looks.
I still feel good about WM, even though everyone is freaking out about it. As long as they don’t go bankrupt, they’re a major bank, and they will rebound. Share price will skyrocket, thus earning folks like us a nice profit