Quote:
Originally Posted by Mathguy
Would you care to provide why you think its due to bounce back up? Based upon what?
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Good question, mathguy.
Actually, I'm no financial wizard, but it seems to me that in my limited investing when good companies make some blunders and take a steep dive like this one has, I find they make the necessary changes to turn themselves around and the stock slowly comes back up.
For example, Coke is a fairly good company but was making some basic marketing blunders in the early 2000's. When I heard they had adopted an entirely new marketing strategy that was consumer based, I bought stock at $42 knowing it had to come back up. I sold those shares a couple of years later at $60. I did the same with Qualcom and made a 250% increase in 18 months, and again with Pixelworks (before their fall) and made 400% in about 2 years.
WAMU has been my bank for years and I have been very pleased with the customer service I have received (as opposed to severla other banks & CU's). I think they made one huge dumb mistake with the sub prime loans, but they seem to be taking all the right painful & necessary steps to correct it. My thinking is that in a few years their stock will be a minimum of $20 and possibly $25. A 100%+ return in three years isn't all that bad.
However, I'm not a financial person. I rely on common sense as a layman in investing.
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