Walter Investment Management Corp (WAC)

[Rockobongo1281]

RockHard - while I agree shares are undervalued, in my opinion, you're over estimating the value of this company. Even after restructuring and elimination of $800m of debt, which results in reduction of interest expense by approximately $60 million, the company is still NOT profitable. They continue to lose money. So those losses will continue to reduce book value of the company.

The key here, is to project when, or if, the company will start losing money and when they will turn around and make money. Otherwise, to value a company based on book value, while its book value continues to diminish due to losses isn't the best valuation approach.

I do believe the company is undervalued at these levels, but the likely 'fair value' is around $1-1.50 at most, not $1.50-2 or anything beyond. That is why I said that we won't know too much until Q2 earnings are released, at which point restructuring and abnormal professional fees will be behind us. I own a lot of shares and am optimistic, but I'm looking at this realistically.