Hi! My name is Alissa. I am a student and a new investor who is trying to understand the market. Recently, I purchased a reasonable amount of WAMUQ stock at 6 cents a share since I knew that they were going to be backed up by JPM/Chase, a trillion dollar company(a hell of a deal if you ask me and I know not all low-priced stocks are good). Most investors are probably giving me the evil eye right now. However, I feel this opportunity is like a diamond in the rough, as long as you're willing to wait a couple of years and I definitely have time to. I have a few questions for the experts and would truly appreciate it if you could answer thoroughly. PLEASE and THANK YOU!!

1.) Since WAMU is slowly changing over to JPM/Chase, what is going to happen to the stock I bought? Will it eventually transfer over to JPM stock or will it stay WAMUQ?

2.) When JPM receives the money for WAMU from the FDIC, will JPM have the right to do whatever they want with the money or will it definitely go towards WAMU?

3.) If the money does go to WAMU, will this cause stock prices to go up some?

I greatly appreciate the time you spend to answer my questions :)

alissaroo -

man, I think it's really hard to answer these questions absolutely because there is still so much uncertainty surrounding this stuff. The Finance Industry has not seen anything like what we are seeing now and so it's my understanding that these major banks are trying to really understand the issues themselves, let alone us trying to figure out what they are doing.

Question 1: my advice about what will happen to your stock with WAMUQ, try to call investor relations for WAMU and JP and see if you can get an inside perspective on how that will work.

Question 2: the money from FDIC. My guess is that JP will be using that money to pay off debts WAMU owes (bad loans), restructuring, etc. But I believe that since the FDIC is backing this, JP will have the use that money in accordance with the guidelines the FDIC set forth as well as the Fed (they are closely watching this stuff).

Question 3: will the money affect the stock price? Gosh, I think right now WAMU is far from getting back on the right track. I think that if there will be any value in this stock it won't come for a while. If you are looking to make money fast, this is probably not the place to be... unless you own 10,000 shares or something; then you can play the 2-5 cent swings and make a little money here and there (risky though).

My advice, you already hold this position so you might as well hold onto it. I would call investor relations like I said and find out what happens to your common stock.

I hope this is money that you are prepared to lose.

JPM purchased the bank subsidiary owned by Washington Mutual Holdings, inc. (WMI) Which is the company you purchased stock in for .06. You did NOT purchase stock in the bank that was purchased. That portion was seized by the FDIC and then sold to JPM. WMI, the company you purchased stock from, is currently undergoing bankruptcy protection. Buying stock in a company under Chapter 11, is VERY RISKY. Most commonly, a company in bankruptcy protection, eventually folds and shares become worthless. If the company does re-organize and come out of ch.11, there is still a good chance that your stock will be cancelled.

I am not sure what money you are talking about. The FDIC won't be giving any money to JPM for WAMU. But if you are referring to the money that JPM gave the FDIC to purchase the bank. That money will probably go to pay off debtors.

If you are referring to the 4.4 Billion that WMI had in a bank account, that is currently being battled over in bankruptcy court, then there is a possibility that you may see a tiny rise in share price due to daytrading and wishful thinkers.

If I were you, and you are novice trader, I would get on the horn with a financial advisor stat. Especially if you have made a substantial investment in this very risky stock. It is a great idea to call investor relations. I know someone who called and the representative had a very grim outlook for the future.

Just so you know, my portfolio is heavily vested in wamu stock (pre-bankruptcy). I lost a ton of money, and I am currently watching day-trading pumpers attempt to give a lot of people false hope. So again, I will say this. If this is money that you can't afford to lose, then get out now while the stock is over .06. If this is some, play money for you, then sit back, watch the news, watch the bankruptcy proceedings and hope for a miracle.