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Seriously? 100% in WB stock!

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Oct 2, 2008 10:48 pm

I was just reading the RR article on the shareholder movement to try to boost the buyout price Citi is to pay for WB.  Evidently there are some shareholders who aren’t that thrilled about the rock bottom price. 

  This one quote I thought was priceless:   One New Jersey-based advisor with a big book says he’s going to vote no, and wants to hold out for $15 to $20 a share: “I think we’re very positive that we’re no longer associated with a bank, but we’re upset it had to happen in this way, where we lost all the shareholder value. The FDIC completely forced this to happen. That’s bullshit.” This advisor, who had 100 percent of his deferred compensation in Wachovia stock—or several hundred thousand dollars—says there are a lot of Wachovia advisors who feel the same way.   Was it a requirement that all of the WB deferred comp was in company stock or is this guy the biggest tool in the industry?       
Oct 2, 2008 10:54 pm

Biggest tool? Otherwise, isn’t WB liable to some extent? Who needs regulation when you have market forces at work.

Oct 2, 2008 10:55 pm

I don’t know.  Along the same concentration lines, I talked to an advisor I used to work with whose friend’s uncle had $7.5MM in WAMU stock, his entire portfolio, and wouldn’t diversify out of it.  He liked the company and the dividend.  Gone.

Oct 2, 2008 11:41 pm

Now that’s crazy. Almost like God has a bigger plan for him (half joking and half serious).

Oct 3, 2008 12:05 am

[quote=Spaceman Spiff]I was just reading the RR article on the shareholder movement to try to boost the buyout price Citi is to pay for WB.  Evidently there are some shareholders who aren’t that thrilled about the rock bottom price. 

  This one quote I thought was priceless:   One New Jersey-based advisor with a big book says he’s going to vote no, and wants to hold out for $15 to $20 a share: “I think we’re very positive that we’re no longer associated with a bank, but we’re upset it had to happen in this way, where we lost all the shareholder value. The FDIC completely forced this to happen. That’s bullshit.” This advisor, who had 100 percent of his deferred compensation in Wachovia stock—or several hundred thousand dollars—says there are a lot of Wachovia advisors who feel the same way.   Was it a requirement that all of the WB deferred comp was in company stock or is this guy the biggest tool in the industry?       [/quote]   "wants to hold for 15-20 a share.  LOL  Why not just shoot for the 52 week high and tell Citi if they dont you will transfer to LPL,  I know since they guy had 100% in stock he cant be sharp, but sure LPL will be happy to have you since you have (probably had) a "big book."
Oct 3, 2008 3:39 am

Deferred Comp…we’ve been told that our comp is safe and was part of the deal…

Oct 3, 2008 1:11 pm

I read where former Lehman CEO Dick Fuld had a net worth of $740 million a couple months ago and the majority of it was in Lehman stock.

  His net worth is now $2 million and his house is for sale.
Oct 3, 2008 1:34 pm

Well he got what was coming.  That $740mm was a mirage to begin with.

  It's AMAZING what greed does to people.
Oct 3, 2008 5:29 pm

Guess it is like having all your money tied up in LP

Oct 3, 2008 5:53 pm

Who has all their money tied up in LP?  THAT would be stupid!  You get a 25K allocation, you put down 25% (6,250), and THAT’s all your money???  Sad.  Other than GP’s, the only people that grow significant wealth in LP shares are guys that have been with the firm 20-30 years.  And trust me, none of them have even CLOSE to all their money tied up in LP.

Oct 3, 2008 6:47 pm

go have a drink. It was meant as a joke. 

Oct 3, 2008 7:15 pm

I have all of my 401K in Van Kampen Comstock.  Is that bad? 

Oct 3, 2008 7:20 pm

Spiff , I think that is a great strategy. I have cashed in everything and have become fully invested in Campbells. I know that everyone will consume soup at least one a month somewhere. That’s good isn’t it?

Oct 3, 2008 7:23 pm
norway401:

Spiff , I think that is a great strategy. I have cashed in everything and have become fully invested in Campbells. I know that everyone will consume soup at least one a month somewhere. That’s good isn’t it?

  Especially when they form lines for it!
Oct 3, 2008 7:27 pm

Snags you make me laugh!!!

Oct 3, 2008 7:30 pm

Liquor, Porn and Tobacco...the great pillars for any investor..or bored advisor on a Friday...

Oct 3, 2008 7:36 pm
jamesbond:

go have a drink. It was meant as a joke. 

  I know that.  My response was (though true) meant to be a dry-witted response.  Didn't work I guess.
Oct 3, 2008 7:37 pm

Bored and satisfied. Thank God , I have passed the " Walking the Beat " stage.

Oct 3, 2008 7:39 pm

[quote=bspears]

Liquor, Porn and Tobacco...the great pillars for any investor..or bored advisor on a Friday...

[/quote]   In my past life, I did finance and development work in the real estate and hotel industry.  An owner of a few of the hotels I oversaw owned a string of p0rn shops.  He was a straight-up guy, not someone you would "expect" to be in that business (no leisure suit).  He said it was the most profitable venture of his life - FAR more profitable than the real estate he owned.
Oct 3, 2008 7:42 pm

[quote=bspears]

Liquor, Porn and Tobacco...the great pillars for any investor..or bored advisor on a Friday...

[/quote]   www.vicefund.com