Mr Cooper Group Inc (COOP)

[LuckyPanda]

Coop would not be buying below market value. The beauty of a s4v transaction to purchase the assets is that it allows the old estate owner to realize true price discovery of the underlying assets through market valuation of the exchanged shares. This also allows old estate owner to capitalize on future profit income of the exchanged assets through equity ownership through shares of Coop. Additionally this s4v exchange works better for a small company like Coop vs a giant like JPM. If you do a s4v exchange with JPM, its almost like doing a cash transaction because the shares that you will receive will only represent a very small percentage of a giant JPM..this does not allow a true price discovery of your assets because it is diluted inside the massive JPM.


However, when you do a s4v exchange with a small company like JPM, you will be getting a much larger share percentage of the company for your assets. Hence your assets now represents a majority of the value of the Coop and hence you will realize much better price discovery of your assets going forward.