Mr Cooper Group Inc (COOP)

[JusticeWillWin]

=======>HIGHLIGHTS from the $COOP Q2 earnings call<======

Q2 earnings call (07/29/21) transcript: https://www.fool.com/earnings/call-transcripts/2021/07/30/mr-cooper-group-inc-coop-q2-2021-earnings-call-tra/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article

Webcast: https://edge.media-server.com/mmc/p/9oquz65y

Presentation: https://s1.q4cdn.com/275823140/files/doc_financials/2021/q2/2Q'21-Earnings-Presentation-7.28.2021-FF.pdf

* net income of $439 million and $4.85 per diluted share
* book value per share increased to $38.89, tangible book value per share increased to $37.24 (NOTE: with the latest 11.1M share buyback from KKR which took place AFTER the Q2 call book value increased to $39.35)
* Completed sale of Title365 for $500 million
* $1.2 billion in cash and $1.7 billion in immediately available liquidity
* Servicing portfolio grew 4% quarter-over-quarter to $654 billion
* $500 million stock repurchase authorization and agreement to sell Reverse servicing portfolio

Jay Bray -- Chairman and Chief Executive Officer

Thanks to the sale of Title365 and strong operating cash flow, we started July with $1.2 billion in cash and $1.7 billion in immediately available liquidity, which is a huge amount of dry powder for both portfolio growth and stock repurchase.

Our board has authorized a new stock repurchase program of $500 million. And with the three-year anniversary of the WMIH merger occurring in the next couple of days, we are likely to begin repurchasing stock very soon.

And this morning, I'd like to share with you a new strategic target we've set of reaching $1 trillion in UPB and approximately 5 million in customers.

In coming years, we expect massive consolidation until the industry is dominated by a small number of mega servicers with highly concentrated market share, similar to other technology-enabled sectors.

We have been guiding to growth of 5% to 10% per year. But as I think about our current opportunities, I would say that if we do not grow at a 10% pace or faster, I'd be disappointed.

Chris Marshall -- Vice Chairman, President, and Chief Financial Officer

The balance sheet has never been stronger, and we have significant liquidity to buy back our stock, as well as to grow our portfolio. And both of those strategies should drive shareholder value.

So when we look at the current discounted valuation in our stock price, quite frankly, we see a major disconnect.

And if you think rates are going to rise significantly, you could go and look back at our 2018 results, when speeds were running at about 10%, and that level of amortization would produce an incremental $450 million in earnings.

As a reminder, most of the DTA, in fact, is only a small piece that remains as NOL, but the restrictions really are behind us now