I am of the belief that once WMI has a PE of 8 or 9, the market will have bottomed. It might be a good time to buy WMI now and just keep averaging down. But the fact that the market is taking this ole work horse down to a PE of 10 tells me just about every stock will be evaluated at a single digit PE.
This is not something I am wishing for, but makes sense if you compare the nastier bear market PE's of the past. All go to single digit PE's.........
Then comes the mother of buying opportunities and WMI is at the top of the list for being a safe business and decent dividend.
The yield is 5.2%. They are buying stock back at a $1.2 billion rate retiring 10% of the float. They have enough cash flow to double the dividend if they so chose. Note yahoo yields are all wrong for every stock--broken software.