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Many important statements why COOP is UNDERVALUED

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Current Report Filing (8-k) Edgar (US Regulatory) - 12/2/2020 9:13:12 AM
Mr. Cooper Group Inc. Announces Pricing of Offering of $650 Million of Senior Notes Business Wire - 12/2/2020 7:00:00 AM
Current Report Filing (8-k) Edgar (US Regulatory) - 11/27/2020 5:19:08 PM
Amended Statement of Beneficial Ownership (sc 13d/a) Edgar (US Regulatory) - 11/20/2020 4:44:52 PM
Initial Statement of Beneficial Ownership (3) Edgar (US Regulatory) - 11/20/2020 4:41:23 PM
Current Report Filing (8-k) Edgar (US Regulatory) - 11/12/2020 7:01:38 AM
Quarterly Report (10-q) Edgar (US Regulatory) - 10/29/2020 7:14:05 AM
Mr. Cooper Group Reports Third Quarter 2020 Financial Results Business Wire - 10/29/2020 7:00:00 AM
Mr. Cooper Group Inc. to Discuss Third Quarter 2020 Financial Results on October 29, 2020 Business Wire - 10/13/2020 4:00:00 PM
Amended Statement of Ownership (sc 13g/a) Edgar (US Regulatory) - 10/9/2020 9:16:31 AM
Mr. Cooper Group Recognized as a Great Place to Work Business Wire - 9/21/2020 9:00:00 AM
Current Report Filing (8-k) Edgar (US Regulatory) - 9/15/2020 7:03:12 AM
Mr. Cooper Group Inc. to Present at the Barclays Global Financial Services Conference Business Wire - 9/9/2020 4:00:00 PM
Etsy, Teradyne and Catalent Set to Join S&P 500; Others to Join S&P MidCap 400 and S&P SmallCap 600 PR Newswire (US) - 9/4/2020 6:02:00 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 9/2/2020 4:25:12 PM
Mr. Cooper to Add 2,000 New Team Members Nationwide in 2020 in Response to Extreme Customer Demand Business Wire - 9/2/2020 9:00:00 AM
Xome® Launches Inspex™, A Virtual Valuations Mobile App For DIY Home Inspections GlobeNewswire Inc. - 9/1/2020 9:00:10 AM
Initial Statement of Beneficial Ownership (3) Edgar (US Regulatory) - 8/20/2020 11:30:32 AM
Mr. Cooper Selects CoreLogic for Its Tax Payment Services Business Wire - 8/11/2020 11:31:00 AM
Mr. Cooper Names Eldridge Burns Chief Legal Officer Business Wire - 8/10/2020 9:00:00 AM
Current Report Filing (8-k) Edgar (US Regulatory) - 8/4/2020 6:08:54 AM
Mr. Cooper Group Inc. Announces Pricing of Offering of $850 Million of Senior Notes Business Wire - 8/3/2020 6:04:00 PM
Quarterly Report (10-q) Edgar (US Regulatory) - 7/30/2020 7:47:09 AM
Current Report Filing (8-k) Edgar (US Regulatory) - 7/30/2020 7:03:31 AM
Mr. Cooper Group Reports Second Quarter 2020 Financial Results Business Wire - 7/30/2020 7:00:00 AM
JusticeWillWin   Friday, 10/30/20 09:42:11 AM
Re: JusticeWillWin post# 637695
Post # of 640599 
Many important statements why COOP is UNDERVALUED

From the earnings call transcript: https://www.fool.com/earnings/call-transcripts/2020/10/30/mr-cooper-group-inc-coop-q3-2020-earnings-call-tra/

Quote:
[...]
As Chairman and CEO of Mr. Cooper, it's generally my practice to comment on financial results rather than the stock price.

But I do think it's appropriate for me to point out that our valuation, which is below 1 times tangible book value and less than 6 times 2021 consensus earnings doesn't seem consistent with the results we just shared with you, whether it's the 51% ROTCE or the stronger balance sheet. Also, as a reminder, Xome is a very valuable asset, which does not show up in book value. And in our opinion, its value is not appropriately reflected in our share price.

[...]

On the third anniversary of the merger which will be in August 2021, we will have significantly more flexibility. At that time, if the stock price still looks undervalued to us, we will be in a position to consider a much larger return of capital. In the meantime, we have cash available to deploy into the servicing portfolio. You should see solid growth in UPB in the fourth quarter and we look forward to welcoming these new customers and working with them in the months and years to come.

[...]

Now on the subject to our stock price, I'd like to add my personal opinion that the market is failing to recognize the real value of Xome, which is an outstanding technology-driven business with an excellent management team. As a reminder, Xome operates in four segments. Our title broker is called Title 365 and the team has done a tremendous job putting it on track to generate about $60 million in pre-tax income this year.

Title 365 also owns a 49% stake in X1 Analytics, which offers an industry-leading automated title data and decisioning engine.

[...]

I'm just saying there are options. Xome is an unrestricted subsidiary. We could put debt on Xome. It doesn't carry anything today.

I'm just saying there are ways to demonstrate that Xome has real value. And today, because it didn't show up in our book value, I think a lot of investors, Mark, I'm not suggesting this is you, but do not understand how to properly value it. It certainly shouldn't hold a piece -- the price to earnings multiple that you signed to a mortgage company. I mean the auction platform is a very high-tech proprietary platform.

And I think its competitor probably has a multiple in the high double-digits. So that's one thing, I'd say the title companies are trading at 9.5 times or 10 times earnings. So if you were to apply those multiples, you'd see the value of Xome is quite significant and our real message is it's not captured. So we are going to do something to convert that value into an improvement in our stock price.
[...]



And regarding Section 382, which limited the current share repurchase program to ~ $100 million until August, but later, there is no limit:

Quote:

[...]
Yeah. This is Chris, Mark. There is a -- essentially a 10% safe harbor on buying back shares in the first three years after a merger. So 382 essentially limits that and that's how we size the $100 million buyback.

So you should think of that as our limit through August of -- you know next summer, August of next year. After which, I think our message was, let's hope our stock improves in value, where it is today and what we expect to build in book value over the next five quarters, we think the stock has tremendous value. If our stock was trading where it was today in August, we'd be buying our shares back in a far more aggressive way.
[...]



======> JUST MY PERSONAL OPINION, NO INVESTMENT ADVICE!
======> I am long COOP, FNMA, FMCC
======> #ShareholderRightsMatter

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