Posted by: business5 April 8, 2017
which stock to buy
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I had bought GNC in October but lost money there- not a lot. Then I bought WMIH. Currently, I'm up. My target price is few more dollars but I just don't know when that will happen. They have something called NOL (tax credit) for which they need to buy companies (profitable) and they just brought in a new CEO to do that. No idea when the acquisition will happen but when it happens, the stock should be a billion dollar market cap. Currently 300 million market cap. But that is just NOLs value. They also have a re-insurance company called WGM...I don't know what is the value of WGM...and they also have another one called WMMIC. Both are subsidiaries. In their prior quarterly report, they said they are dissolving WMIIC, their second subsidiary. Also, to buy profitable companies, they were given 400 million by a company called KKR and 200 million by Citi Bank - in exchange for stocks when merger/acquisition happens. This event happened 3 years ago. So I'm excited as 3 years of no merger or acquisition is a good indication to me that something will happen soon..Someone/s brain must be boiling in the meeting rooms. Becuase, they fired the CEO who had been there for 3 years and could not make the merger/acquisition happen. Now the new guy is a pick by KKR...the guys who have given 400 million themselves in exchange for substantial stocks of WMIH....If it sounds, confusing, look for another stock. I have no other info about WMIH. Those NOLs are worth approximately 2 billion in cash value...6 Billion in tax value (35% tax rate). If all goes well, WMIH could be a $10 stock at some point..I just don't know when.
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