Mr Cooper Group Inc (COOP) オプション

Exactly and if posters did not have thought process about the future there would be no sense in a message board as those people already know in their mind.

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Thanks LG. Now just because Bray doesn't like large OS, is not necessarily a link to a reverse... and personally I would not want to see this happen...
So..if you dont mind...play out your scenario as you see it...I am a common and preferred holder of record from way back...

I will hold you harmless in your assumptions...I just want to see all options on the table..

Respectfully,

JHD

jhd51, you said the following.

There is always the reverse split to lower the OS to a reasonable number, which enhances EPS—all unknowns for now.

________________________________________________

I do not think this is unknown because the RKT CEO Jay Bray has made it very clear more than once during his COOP CEO tenure that he does not like large outstanding shares. He wasted no time implementing a 1-12 reverse split around October 2018, immediately following the NSM merger. His thoughts are no doubt still the same.

However, there is one action that may forgo Jay Bray pulling a six-to-twelve reverse split on RKT. I have made my thoughts clear in the early going on what I expect to happen to RKT. I have also long said that a DST will play a pivotal role in our eventual distributions regarding our timely signed releases.

I believe DST WMI will wake up from its comatose state where the timely signed releaseors BENEFICIALLY own their respected percentages, and then DST WMI (or similar name) will buy RKT some time during the year 2026, bringing back the former Estates assets full circle, thus completing the resurrected WMI preventing a RKT RS.

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Thanks for that...great analysis...that's why I dont trust these financial rags like guru focus who see a value of $80 per share...

Reasonable would be $20-$30 in a couple years...if they go after it and we see some rate declines as you alluded to.

regards,

JHD

Just my concern on how they will handle the OS...revenues will have to grow substantially and fairly quickly..of course there is always the reverse split to lower the OS to a reasonable number which enhances EPS. All unknowns for now.

JHD

So the OS would be 2.83B shares including the share issuance for Redfin + COOP and a Mkt cap of 30B would put the share price at ~ $10.60 which I think is fairly conservative and probably the low end from a pro forma-dilution perspective but maybe not un reasonable. To hit the target of $9.4B / $13.44 a share stated in the 425, the market cap would need to rise to about $38B. After adding the 3 companies current market caps together. RKT@ 30.6B + COOP @8.58B + RDFN @1.289B = combined they are 40.7B probably not unreasonable to achieve a Mkt cap of 38B and it hopefully is higher. If we get 3 or 4 rate cuts to deal with possible changes to the economy? who knows....

Mike if you have over $730K invested you may want to read the 8K in its entirety. JMHO

https://d18rn0p25nwr6d.cloudfront.net/CIK-0000933136/6f54fdf4-1651-4a95-92de-a5de86635e66.html

Best regards

DB4D

Care to elaborate ?
Thank you

I have been seeing Rockets TV ads...Veteran offers "0" down...and my email is being bombarded by Redfin...so when you add Mr Cooper into the mix it could be a explosive triangle in a good way...of course going to a couple billion OS and a market cap of over $30 billion will leave a couple scenarios open...so who knows...

Lol… you got the “Brick” part correct.

JHD

Follow the yellow brick road.....

You are correct and therein lies the problem..
with the BS that pervades this board nowadays…
Example… there have been so many scenarios on escrow. No wonder my financial advisor’s laugh at it.
And instead of a healthy conversation, people like Bill who poof you away so they don’t have to stand up to their argument and I guarantee you many of those arguments are weak …and so many conversations about COOP and what they are going to do as far as shares for escrows, and we get bought out by rocket are you kidding me ? 99.9 % never saw that coming… so the background changes and the photograph takes on a new light and this time you see.. I am right.

Uh no… you have never been right.

And now there’s a new scenario .. and another…so…

Let me know when the tornado lands
and the house flies away
and we go from black-and-white
to color in a day.

Many here will think
“What did he just say?”

This truly is the land of OZ. Odd but Oz..

JHD

There will be some middle road. Always is.

JHD

If US can deliver European standard in food, chickens ...

Tariffs may not be set in stone but they may be use to negotiate with countries to actually implement "FREE" trade.....let's wait and see what happens in the next 6 months...

Well, I understand dilution a little bit, but a reverse split didn’t hurt me at all with Mr. Cooper group.

JHD

Yes, I can see that but still a lot of complexity and complexity means more cost just do away with the damn tariffs. Just trying to figure out that crap cost a lot of money..

JHD

Thank you Sunshine for your constant and refreshing clarification on so many details. I keep trying to have a clearer view whether to stay or sell prior to the completion, for the only reason of a possible Reverse Split after the deal is consummated and the price being at its lowest due to a dilution effect.
How much weight would you give to this possibility if as you say, Jay Bray wouldn’t be the all mighty decision maker of the company as a whole.?
Thank you in advance.

If they have to have tariffs, find a way for us cnsumers to receive tax credits for purchases.....or give corporations here in the use to receive tax credits without raising prices...

Great idea, Elon, a free trade zone between the US and Europe. No tariffs.

JHD

My apologies, i think this is related to Rocket Companies.I was mistaken.

What happens when an "Up-C" structure collapses, legacy shareholders (those who held interests in the original pass-through entity) typically receive shares of the publicly traded company (PubCo) in exchange for their units in the partnership, enabling them to sell their shares in the open market.
----------------------------------------------
Up-C Structure:
In an Up-C structure, a company (PubCo) is formed and conducts an IPO, but the pre-IPO owners (legacy shareholders) continue to hold their interests directly in the pass-through entity (OP).
-----------------------------------------------------------------------------
Collapse:
The collapse of an Up-C structure occurs when the legacy shareholders exchange their interests in the pass-through entity (OP) for shares of the publicly traded company (PubCo).
-------------------------------------------------------------------------
Tax Implications:
The Up-C structure allows the pass-through entity's equity holders to retain the tax benefits of the pass-through entity.
MAY BE THIS WAS THE REASON WMI LIQUIDATING TRUST MAINTAINED ITS STATUS AS A LIQUIDATING TRUST THRU MARCH 2022, AND ESCROW POSITIONS WERE MOVED IN FEB 2022.
------------------------------------------------------------------
Redemption Provisions:
Some Up-C structures may include provisions where PubCo has the right to redeem the owner's common units in the partnership and shares of Class B common stock in PubCo for cash.

COOPs “Up-C” structure: Mergers are subject to the completion of the collapse of the Company’s “Up-C” structure
The Up-C Structure (Briefly) Explained
The Up-C is a two-tiered structure in which a newly
formed C corporation organized to serve as the PubCo
is admitted as a new managing partner in an existing
operating partnership (OpCo) by using the capital that it
raises in the IPO to acquire an interest in the OpCo.
See Figure 1.
Public investors own their voting and economic interests
directly in the PubCo, while the pre-IPO owners (Legacy
Owners) continue to hold interests directly in the
OpCo. Legacy Owners maintain public liquidity in their
investment via their negotiated right to periodically
exchange their retained interests in the OpCo for an
equivalent value of common stock in the PubCo. On
such an exchange, the PubCo generally receives a tax
basis step-up in its acquired portion of the OpCo assets,
which creates ordinary deductions for depreciation,
amortization, and imputed interest. These deductions
reduce the PubCo’s cash tax obligations and serve as the
primary tax benefit shared between Legacy Owners and
the PubCo when the various parties execute a TRA.
https://cdn.hl.com/pdf/2024/tra-market-update-q4--2023.pdf
Who are the "Legacy Owners" of COOP?.
LTIs?.

So is it a fixed 9.4 billion or it is 11 to 1 conversion for our shares? I've got a bunch of COOP and will have over 60k RKT shares with that conversion.

I think folks would be wanting to hold some RKT if that event were to take place.. IMO

JHD

sun, fully understand, and thanks for explaining, but there could always be a higher bid changing the terms completely. This is NOT at all unusual with companies taking over others, especially the more successful the more likely another bid arises.

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(Just to be clear: Bray is becoming CEO only of their Rocket Mortgage division, not the entire company.)

When you say you think $143 is an undervalued price, do you understand that $143 is merely the 1:11 value that was based on March 28 closing prices? And that as RKT rises, so does that valuation for COOP? If RKT continues to climb until the acquisition finalizes, the value given to COOP shareholders will also automatically increase. The value COOP shareholders will get won't be "only" $143 unless the RKT price is at the same level it was on March 28. If the price goes up, so does our value at finalization. We're lucky that RKT had sunk to that level on that day, because, as has happened since the announcement, RKT is on its way back up to where it was.

As of Friday's close, the value we'll be getting is $172/COOP share.

Look at it this way: Will you be upset if RKT shares are at $18 in the end? We would get a value of $198 per COOP share if it is.

sun, do NOT be surprised if a significantly higher bid materializes for COOP between now and Oct/Nov as COOP is in a much shrinking arena and seems to be undervalued with a value for COOP shareowners at $143.00.

I would expect RKT to still win the deal even at a higher price, and an extraordinary action happened that rarely, if ever, happens. That is, the surviving merger company RKT will appoint CEO Jay Bray of the company that was taken over by COOP as the CEO of RKT.

This tells me that the assets of the former WaMu Estate along with their owners who are BENEFICIAL owners of the former estate via a WMI (DST) Delaware Statutory Trust who signed timely releases by March of year 2012 will come to life and end up purchasing RKT by the end of year 2026 bringing full circle this WaMu travesty completing the resurrection of the old WMI or similar name only much larger and more successful. I also see Lehmans playing a role due to their 60B in NOLs as well as Fannie and Freddy.

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Calculating HOW many went to whom and logging tallies into the DTCC ?

Question is, why did they maintain Escrow Positions thru Feb 2022, even after cancelling WMILT as of Dec 31,2021?.

IMO The National Republic Bank of Chicago Chicago IL 10/24/2014 and the New City Bank 2/24/2025 is the termination of Recievership which should clear the way for payment of settlement. Total speculation.

Federal Deposit Insurance Corporation
Notice is hereby given that the Federal Deposit Insurance Corporation (FDIC or Receiver), as Receiver for the institution listed below, intends to terminate its receivership for said institution.

The liquidation of the assets for the receivership has been completed. To the extent permitted by available funds and in accordance with law, the Receiver will be making a final dividend payment to proven creditors. Based upon the foregoing, the Receiver has determined that the continued existence of the receivership will serve no useful purpose. Consequently, notice is given that the receivership shall be terminated, to be effective no sooner than 30 days after the date of this notice. If any person wishes to comment concerning the termination of the receivership, such comment must be made in writing, identify the receivership to which the comment pertains, and sent within 30 days of the date of this notice to: Federal Deposit Insurance Corporation, Division of Resolutions and Receiverships, Attention: Receivership Oversight Section, 600 North Pearl, Suite 700, Dallas, TX 75201. No comments concerning the termination of this receivership will be considered that are not sent within this time frame.

Notice of Intent To Terminate Receivership
FundReceivership nameCityStateDate of appointment of receiver
10507
The National Republic Bank of Chicago
Chicago
IL
10/24/2014
(Authority: 12 U.S.C. 1819)
Federal Deposit Insurance Corporation.
Dated at Washington, DC, on February 27, 2025.

https://www.federalregister.gov/documents/2025/03/04/2025-03474/notice-to-all-interested-parties-of-intent-to-terminate-receivership

I do not care....the issue is every post the creep makes is how he bought in the single digits and sold at 50.50....then to post everyone's opinion is crap while his opinion is the only one that matters....then claims to be the only one that is accredited investor....the other is he received a ghost payment and bragged that he was the only one.....for years he claimed nothing could be done until the share count was reset....or that interest would be paid out only if there is another acquisition....it just goes on....or how he is part of the insider group....it just goes on....the worst is he claims to be the smartest investor in the room....because he took a profit....well many sold at 50.00 but they don't post on a message board....

Gooood morning people, It’s a firer sale going on out there BUY,BUY,BUY ur favs blue bloods
COOP will go where it’s intended to, The puppet OLE BJ SCORES AGAIN off our backs as the BOYZZZZ DO TOO 🤬GLTA-have a great weekend people -Ts

Edit
Rocket Cos. upgraded to Buy at Deutsche Bank, to Market Perform at KBW
Rocket Companies (NYSE:RKT) stock jumped 15% as Deutsche Bank and KBW upgraded the lender's stock after it agreed to acquire Mr. Cooper (COOP) in $9.4B all-stock deal earlier this week.
Deutsche Bank analyst Mark DeVries upgraded RKT to Buy from Hold, expecting the acquisition will "provide a big step toward the ambitious 2027 market share targets laid out last September (at least the 20% refi share target)."
He lifted its price target to $16 from $14. He sees more upside potential in a lower rate environment, where the revenue synergies from boosting Mr. Cooper's recapture "should be more pronounced."
KBW analyst Bose George raised Rocket (NYSE:RKT) to Market Perform from Underperform, as he sees the Mr. Cooper (COOP) deal creating a more balanced business model, providing more confidence in earnings estimates.
"RKT's 2027 market share goals appear more attainable, considering the COOP deal would roughly quadruple RKT's servicing UPB to ~$2.15T and position RKT to utilize its industry-leading recapture capabilities in any declining rate environment," George wrote in a note to clients.
The recommendations of Hold or better from Deutsche Bank and KBW contrast with the SA Quant rating of Sell. The average SA Analyst rating  is Buy, agreeing with the Deutsche Bank recommendation, while the average Wall Street rating  of Hold aligns with KBW's assessment
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But,but,but 🫣🤔🤭

It's about trading to make a profit, pixie. I don't think anyone is here to lose money. Let's say someone sold today at 130 something and this stock bounces to 200 in November? Are they fools for not waiting until November to get that bigger profit?

99.8% of the people on here will tell you your post was dumb. It really has ZERO to do with the cowboy...It's about trading to make a profit. Isn't that why we are all here, duh?

Its myOption.....call the options department of your brokerage account to answer your question.....IMO, since they bought the call option, then they have exercised rights to the dividend when they take delivery of the stock in June, 2026....I did my 200 call option in january , so as not to pay the taxes in 2025......however, I may have a chance to roll that option again if this market tanks, and brings Coop down along with the rest of the market....my intention to do the covered call on in the first place was the fear of a market selloff, and it proved right....IMO, world markets are bigger than DJT and his ideas, and cooler heads will prevail and countries will work out these tariff differences before the world blows up..... so, I am a seller of PUT options to capture the great monetary fear engendered by this POTUS....good luck forward into this great unknown......Lodas

Good stuff

He’s not weird you’re the one that comes out of the dungeon to slap people for what you consider a stupid post. It’s really none of your business..

JHD

Again, what he eats don't make me sh*t. AZ selling at 10, 50, 100 or 150 doesn't make my bank account move. I don't understand why this bothers you soooooooooooooooooooo freaking much. Weirdo, lol

One thing you can be sure of is that this development hit COOP shorts right in the shorts and they're here and on other boards doing everything they can to confuse things and downplay the value increase that this acquisition means for COOP shareholders.

Imagine that last Friday you went short on COOP at $104 (maybe even with margin funds) and woke up on Monday owing 130% of that money back to the brokerage. AND having it look like you might wind up owing a lot more if COOP and RKT keep going up.

Some of them will try to make stupid arguments and confusing jokes to make it sound like buying RKT is a better idea than buying COOP right now. They'll try to make it sound like RKT is a bad company that won't pay off in the long run.

This acquisition might not happen. It might all fall apart. If that happens, we'll have to deal with the fallout.

But right now, based on what we know, COOP is a buy and is selling at a 30% discount.

Dumb statement is that coop didn't matter after he sold at 50.50...then kept saying shares have to be reset first...interest will be distributed after another acquisition.....the other is claiming to be the smartest in the room...has there been anything cactus stated about escrows to be correct...wait ABS distribution happened on the 25th.

They sure do have that option to sell at any price they want but when someone rubs it in other people’s faces? I don’t respect them. I hope he buys 50 vettes who gives a crap..

JHD

What a dumb statement! People sell at various price points for their own personal reasons, end of story. If they make ANY profit that they are comfortable with, so be it.

Have a great evening....

I am sorry you mom could not see this merger...and coop's pps fly...

Nice day for us, considering the market. The amount of people I've been seeing utterly freaking out over a correction has been surreal to observe on other boards. Perhaps they shouldn't be investing at all?

It sure did..they ran it all around but nice ending. Have a great weekend Pick!

JHD

Its always been soon DG.

JHD

Then I guess you're ready to sell me all right title and interest in and to and from your legacy shares on the cheap right, since NOTHING IS COMING BACK

You got that right!!!!