Washington Mutual Inc. (OTCPK: WAMUQ)

Washington Mutual Inc. is in bankruptcy. Investors should be cautious in buying common stock of companies in bankruptcy. It is extremely risky and is likely to lead to financial loss.

Washington Mutual Inc. (WAMUQ) is a consumer and small business banking company with operations in U.S. markets. The Company is a savings and loan holding company. It owns two banking subsidiaries, Washington Mutual Bank (WMB) and Washington Mutual Bank fsb (WMBfsb), as well as numerous non-bank subsidiaries. The Company operates in four segments: the Retail Banking Group, which operates a retail bank network of 2,257 stores in California, Florida, Texas, New York, Washington, Illinois, Oregon, New Jersey, Georgia, Arizona, Colorado, Nevada, Utah, Idaho and Connecticut; the Card Services Group, which operates a nationwide credit card lending business; the Commercial Group, which conducts a multi-family and commercial real estate lending business in selected markets, and the Home Loans Group, which engages in nationwide single-family residential real estate lending, servicing and capital markets activities. In September 2008, the Company filed for Chapter 11 bankruptcy.

Washington Mutual Inc. was founded in 1889 and is headquartered in Seattle, Washington.

Source: Reuters.com, SEC Filings.

Financial Summary

WAMUQ is now owned and operated by JPMorgan Chase.

Source: Reuters.com, SEC Filings.

Analyst Consensus

No chart available.

Source: www.ft.com

No consensus analysis data available.

Source: http://www.reuters.com/finance/stocks/financialHighlights?symbol=WAMUQ.PK

Investment Highlights

A Delaware bankruptcy judge in late January denied WAMUQ’s request to force government regulators to hand over documents related to the 2008 collapse of WAMUQ. In a court filing last month, the bank holding company asked the court to direct the handing over of documents and the examination of witnesses from a host of regulatory bodies, ratings agencies, banks and other entities. Some, including the Federal Reserve and Treasury Department, agreed to turn over at least some records, but the Federal Deposit Insurance Corp. objected to WAMUQ’s request.

The FDIC seized Washington Mutual bank, a Seattle-based savings and loan with about $307 billion in assets, in September 2008. It then sold it to JPMorgan Chase & Co. for $1.9 billion, a price that Washington Mutual claims was much too low. WAMUQ sought the records as part of an effort to investigate potential business tort claims based on alleged misconduct by JPMorgan Chase. WAMUQ stakeholders allege in a Texas lawsuit that JPMorgan engineered a plan to damage Washington Mutual’s banking subsidiaries so it could buy them for a heavily deflated price.

Source: www.yahoo.com

Technical Analysis

Source: http://stockcharts.com

WAMUQ is trading above its 50-day moving average. This is considered to be the sign of a bullish trend. There is added weight to this indication because the moving average is rising and suggests that there has been buying interest in this stock.

WAMUQ is trading within its Bollinger Bands. This is a normal condition and suggests that the stock is neither overbought nor oversold relative to the recent price action.

The MACD for WAMUQ currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

Comparative Analysis

Source: Thomson Financial

Insider Trading Activity

Source: Yahoo Finance

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