Mr Cooper Group Inc fka COOP

[bkshadow]

UncleBo, it is very unclear...

...at least to me, but I could think out loud.

First, it is understandably very disconcerting when there is no ability to 'even have news. WMIH has WMMRC, in runoff mode and minimized by commutations, which in turn allowed for significant payments on the RONs, most of which in turn to the PIERS. There is no real 'business to generate news.

That leaves "announcement" of something as the only real driver of WMIH at this time; i.e., the December KKR announcement of the contingent strategic investment agreement. However, WMIH is rife with insiders (BOD affiliations, consultant affiliations, etc. to name only a few). A 20-20 look back will show a whisper in early 2013, lips to ears big time in May 2013, then a couple of hurry ups through September; but a complete blackout 2+ months prior to the December KKR announcement. SMART insiders, that time period is subject to SEC insider program detectors; they stayed ahead of it.

I look for 'repeat before the next announcement (if the beneficiaries of the inside leaks from 2013 took profits and are waiting for another whisper). Volume and PPS increase 'for no reason was the 'tic indicator in the periods identified above. Inside traders are like alcoholics and drug addicts, they know the risk and continue to run with it.

I look also for the inverse or reverse, volume and PPS decrease, as an inside indicator of 'something is weakening in the KKR relationship.

I don't know the BOD players personally, but the terms and conditions of the deal were clearly 'protective; against allowing a sequence of events that would be positive for hedge funds and not for retail shareholders. You raise a good point on the voting, it looks big, it looks like Tepper PLUS (either Greywolf, or a whole bunch of other < 5% hedge fund holders)

The $ question might be, is KKR the solution to handling Tepper or is it of the same breed? I do not know.

Currently, there is a PPS drip on not much volume; so it doesn't fit either of the above. But such is only my perspective, but it is why the May 2013 activity prompted my material investment interest.

What was the significance of the insrance commissioner of Hawaii permitting the creating of the segregated cell, but denying the additional guarantees for the creditors ? Does this have any impact on M&A?

I believe this all became a moot point with the KKR strategic investment agreement. Also, I believe that, since it disclosed that WMIH would try to accomplish such with Hawaii regulators, it 'tried.

Other that that, I think KKR deal was signed end of Jan so it takes time to identify potential targets (to their liking as well) and then negotiate with them. It has been 8 and 1/2 months since then.

Nate Thoma had this comment on Y after the KKR December 2013 PPS rise.

nate.thoma • Jan 3, 2014 7:14 AM


It seems retail investors are still unsure of the basis for current valuation. I'm sure KKR knows exactly what a steal they got, and with their horizon, I don't think capital appreciation is their main focus, Gingham.

This gave me the inference that he didn't believe there was some magic KKR deal that would be immediately unveiled; rather WMIH would become part of the "fabric" of KKR over time.

"Gingham." Classic NT.