Mr Cooper Group Inc (COOP)

[JusticeWillWin]

=======>HIGHLIGHTS from the $COOP Q4 earnings call<======

EC transcript: https://www.fool.com/earnings/call-transcripts/2021/02/23/mr-cooper-group-inc-coop-q4-2020-earnings-call-tra/

* Q4 net income of $191 million or $2/share, nearly $700 million in cash, tangible book value grew to $26.27

Jay Bray - Chairman and Chief Executive Officer:

Originations turned in excellent results, with pre-tax income of $435 million for the quarter. This is the third quarter in a row of income over $400 million. And I would add that first quarter is shaping up to be another exceptional quarter.
[...]
We're feeling positive about opportunities to win more bolt deals in 2021.

* expect very strong cash flow from operations to continue throughout 2021
* a fantastic outlook well into 2022 and later
* the planned monetization of subsidiary XOME

As you know, we've undertaken a strategic process to monetize our Xome subsidiary. That process is ongoing, and a successful conclusion could generate significant additional cash. Also, I'd remind you when projecting our cash flow, don't overlook the value of the net operating losses we took on with the WMIH merger, which will shield us from paying federal taxes for many years to come.

* tangible book value increase when the corporate tax rate is lifted to 28%

The Biden administration has proposed raising the corporate tax rate to 28%. If this goes through, it will result in a markup to our DTA by almost $400 million, which would add $4.28 in tangible book value, which would be an increase of 16%.

* mark-up of the MSR portfolio with rising interest rates

For example, if interest rates went up by 100 basis points, we'd expect to mark up our MSR by $418 million, which would equate to an increase of $3.54 a share in tangible book value.

Chris Marshall - Vice Chairman and Chief Financial Officer:

...but I certainly think that the shares that I own are going to be worth a lot more in the future

and

So you add that potential for monetization of some or all of the -- Xome, you think about the changes in tax rates that are almost certain to occur and you could see our tangible book value be up by 50%. The question is how much premium are we going to get in the marketplace. When you look at the multiples that some of our competitors are trading at, and we look like a dirt cheap stock.

* stock repurchase restrictions will be lifted on August 1st, COOP can then buy back up to 50% of the outstanding shares

This year, prior to August, there's a safe harbor that we've operated under in buying back stock that to be no more than 10% of our outstanding shares. In August, that would shift to 50%.

Billionaire investor and hedge fund manager Leon "Lee" Cooperman:

But it just seems to me your stock is very mispriced