Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, October 19, 2007

Article Excerpt

WASHINGTON MUTUAL INC. $29.09, New York symbol WM, earned $0.23 a share in the third quarter of 2007, down 70.1% from $0.77 a year earlier. The drop came from a nearly 500% increase in loan loss provisions, mainly due to weakness in the housing market. Writedowns of asset-backed securities also hurt earnings. Revenue fell 2.9%, to $3.4 billion from $3.5 billion. Washington Mutual hoped that recent moves to cut its exposure to subprime mortgages would make its mortgage operation profitable by the end of 2007. However, losses at this division will likely continue into 2008. The stock fell over 10% on the news. But the company’s other main businesses, retail banking and credit cards, continue to attract new customers and expand revenues. That should help Washington Mutual maintain its $2.24 dividend, which yields 7.7%. Washington Mutual is still a buy for long-term gains. J.P. MORGAN & CHASE CO. $45.02, New York symbol JPM, wrote down $1.3 billion worth of loans related to recent…