Mr Cooper Group Inc (COOP)

[UncleBo]

Yanik, very good post...Thank you


My 2 cents on the PPS

MVHO, the downwards movement of the stock price is driven by 2 key factors:

1. The pay off of the RONs, which is a legitimate reason to shave off 10 cents from the valuation

2. Fear that the SBP is expiring and it might...it seems likely that it will not be renewed.

It is all nuance, the execs have said that they prefer to continue to do business with KKR (before they look for alternatives in terms of financing). Nothing has changed fundamentally since Dec 2013 when the "first deal with KKR" was announced and the PPS is reflective of that. Of course, the company has burned through some cash for salaries and expenses etc. over the past 5 years since the exit. But the premise at least in the public eye has remained the same - large NOLs, SPE which needs financing etc. Yes, a lot of impatient hedge funds which came along and got out, since they were hoping to make a quick buck - it didn't happen.

Uncle Bo

No material events in a negative light have been represented recently, but rather one positive press release regarding the company paying cash to close out those notes which were draining funds slowly with interest every quarter that they were not paid off.