Mr Cooper Group Inc (COOP): Implied PPS of WMIH is $1.93 IMO. If you...

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JusticeWillWin

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Thursday, 03/08/2018 9:26:43 AM

Thursday, March 08, 2018 9:26:43 AM

Implied PPS of WMIH is $1.93 IMO. If you look at the NSM 8-K from today at page 12, you can see a "pro forma" tangible book value of $2,160 millions of NSM (with the added "value" of WMIH and its NOLs), or an accretion of 51%.

https://www.sec.gov/Archives/edgar/data/1520566/000119312518072479/d492124dex991.htm

And page 10 shows the share structure post-merger, resulting in 1,117 millions of WMIH commons.

So I think it is safe to say the PPS should be at least $2,160 / 1,117 = $1.93 post-merger, not factoring in any growth in the next years, just tangible book value / outstanding shares

You can also divide the $24.71 of "pro-forma" NSM PPS on page 12 by the exchange factor 12.7793 with the same result of $1.93

Comments are welcome...

But all IMO, no investment advice.

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- Just my personal opinion, no investment advice! -
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