Mr Cooper Group Inc (COOP)

[JusticeWillWin]

I think you have to reread the part what they said about MONETIZING XOME at the Q4 call, especially the RED parts:

From the Q4 earnings call transcript:
https://www.fool.com/earnings/call-transcripts/2022/02/11/mr-cooper-group-inc-coop-q4-2021-earnings-call-tra/

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

Now if you'll turn to Slide 15, let's talk about the Auction Exchange. As you know, we're very excited to see this platform finally start to ramp back up and generate revenues now that state and federal foreclosure moratoriums are ending. As Jay said, we continue to actively explore monetization options with the caveat that this is a very valuable business. So we're in no rush.

[...]

Also, there's a backlog from the last two years, which still needs to be worked through. And this forecast assumes that the economic outlook remains rosy. If we see any real deterioration in the credit cycle, foreclosure activity could be much, much higher and Xome's revenue would be potentially through the roof. All right.

And Sagent, as part of this transaction is going to replace that with a cloud-native core and have the first end-to-end cloud-native platform. Now you may -- that may mean a lot to the financial analysts on the call. But I know your peers in technology will recognize that as a complete game changer.

[...]

And as long as there are attractive opportunities to do that that's what we're going to do. Now if we get to a point where pricing changes and -- or the stock continues to trade at a discount to book, then we'll be more aggressive there. But at this point, I think our focus is on growth, profitable growth.

[...]

But when we talk about the discount in stock, it's not the discount to tangible book value necessarily, which as we just said, at current levels, would be north of $50, maybe almost $52. That doesn't include the value of the Auction Exchange.

And as you heard in my comments, the return to full profitability may be a little bit slower than we said, but that is an absolutely great business, a very valuable business and we recognize that. And I think investors are starting to recognize that. So when you think of our tangible book value, you've got to think of it as tangible book value plus X for Xome. I'll let you figure out what you think that business is worth, but it's worth a lot.

[...]

It's approximate. And in this guidance, it's kind of hard to think out exactly how it's going to unfold. So the $50 million that we talked about was really -- and I think we made it clear it was all back-end loaded. We expected revenues to really start to kick up in the third quarter.

It may take the fourth quarter, but the $200,000 is just normal run rate prior to the pandemic. It's definitely going to be higher than that because there haven't been anything. Nothing has been foreclosed on -- or virtually nothing other than vacant properties. So it's definitely going to be a big surge.

That's our guess right now. We're in that range. And we'll know more as the year progresses, and we'll certainly talk about Xome a lot more. We're not necessarily going to wait to monetize Xome when it hits that surge.

It's just when we see normality return and that's when we think we'll get full value for the business.

Your post:

JWW, If you look at the latest historical chart of Zome, It's business is nothing like it was in it's heyday of 2009. Zomes business is picking up, but it will be over a year before they are able to really produce some large numbers. Court dockets are way behind because of COVID-19 and it will take more than twice as long to actually foreclose as it did before 2020. IMO a spinoff of Zome once they can show some big numbers would create more cash. COOP could have their cake and eat it too. Your exuberance is understandable, but at the moment it is misplaced IMHO.


"COOP could hit $70+ within one day when they successfully sell their Auction Exchange which is worth ~$1 billion (or even more) IMO and is not reflected on COOP's balance sheet!

They said the Auction Exchange is "the most valuable of the XOME business units" in the Q3 call, and "it's worth a lot" in the Q4 call"
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