Bove is a buffoon. He's been bullish on the financials (especially C and BAC) since January. Now he's worried about "danger zones"?? Another pathetic analyst.
Lehman says Wash Mutual needs to add "substantial" reserves By Greg Morcroft Last update: 12:35 p.m. EDT July 14, 2008 NEW YORK (MarketWatch) -- Lehman Bros. analyst Bruce Harting told clients Monday that he expects Washington Mutual WM 3.47, -1.48, -29.9%) will have to add substantial reserves for loan losses and that it is unlikely to be profitable until at least the second half of 2009. "As Washington Mutual builds reserves to cover these losses, it should remain unprofitable until credit costs normalize around the second half of 2009. After taking a provision of $3.5 billion the first quarter of 2008, we expect Washington Mutual will take a $4 billion provision in the second quarter, building reserves to $6.9 billion, producing another large loss for the quarter. We estimate a loss per share of $1.48," Harting said. Shares of Washington Mutual traded down about 30%, to $3.50.
If Cramer says sell, then is this the bottom? Or would this be a case of a blind squirrel finding an acorn?
I'm not trying to spread rumours (not this time anyway), but I hear a bank run on WaMu is currently underway? *shrugs*
I FINALLY got my sister and one of my good friends to yank out all their cash today in WaMu accts....I have been hawking these guys for several months and they finally pulled the trigger today. I mean, why in the heck keep accts at a bank that is trashed financially???
PR this afternoon, they claim everything is OK: http://biz.yahoo.com/bw/080714/20080714006246.html?.v=1