Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Monday, August 13, 2007

Article Excerpt

WASHINGTON MUTUAL INC. $35.07, New York symbol WM, bundles its mortgage loans into securities and sells them to other investors. That helps it raise cash to make more loans. However, increasing volatility and rising interest rates in some debt markets are making it harder for Washington Mutual to sell mortgage-backed securities. This lack of liquidity has hurt Washington Mutual’s stock price in the past few weeks. But the company has steadily cut its exposure to the housing market since the start of the year. Cost cuts, growth in its retail banking business and the expansion of its credit card operations cut its reliance on mortgages and should let it keep paying its $2.24 dividend, which provides a 6.4% yield. Washington Mutual is still a buy for long-term gains. MCDONALD’S CORP. $48.71, New York symbol MCD, moved up on media reports that it is close to selling Boston Market, which operates 630 casual dining restaurants. The company hasn’t disclosed a price but it is…