Mr Cooper Group Inc (COOP)

[jerrylev]

Guesstimate EPS and PE of WMIH:

From yesterday NSM earnings report:

https://seekingalpha.com/article/4187818-nationstar-mortgage-holdings-nsm-ceo-jay-bray-q2-2018-results-earnings-call-transcript?part=single

0.53 per diluted share / quarter * 4 = 2.12

PE = 18 / 2.12 = 8.49

After merger:

Number of shares = 1.117B shares

Earnings = 58M * 4 = 232M

Earning per share: 232 / 1117 = 0.2077

PE = 1.4 / 0.277 = 5.054 !!!!

Conclusion: merger has no dilution despite apparent increase in number of shares but PPS also drops.

Above guesstimate does not include 20% Tax savings thanks to the NOL plus WMMRC earnings (minor) + 800B new servicing in the pipeline (some were already announced and some were not).

With the growth, I see at least a PE of 10 from 5.054, which means that the stock will double at least in the very near future. This will happen before any new acquisitions.

And we don't need S4V, not that it is ILLEGAL and IMPOSSIBLE anyway.

An upgrade will come soon after the merger is 100% done which is July 31st.

You have to be a door knob to not have loaded up the stock already.