Mr Cooper Group Inc (COOP)

[JusticeWillWin]

>>>>HIGHLIGHTS from the COOP 4Q'23 EARNINGS CALL<<<<

Recording of the webcast: https://edge.media-server.com/mmc/p/y3cdmnwt/

Presentation: https://s1.q4cdn.com/275823140/files/doc_financials/2023/q4/4Q-23-Earnings-Presentation-FINAL.pdf

Transcript: https://www.businesswire.com/news/home/20240209042862/en/Mr.-Cooper-Group-Reports-Fourth-Quarter-2023-Results

My favorite parts are...

The WMIH merger brought us 1 billion in deferred tax assets. At the time, there was skepticism about their value.

Today, we have realized 63% of that balance in the form of incremental cash flow, which has helped us exceed expectations in terms of both growth and stock repurchase. So, where are we going from here? We're now seeing some of the best growth opportunities in the company's history. And we will continue to grow our servicing portfolio as we have for the past 15 years. But our strategic focus is now squarely on return on equity, which shouldn't surprise you since we've been commenting on ROTCE on every quarterly call.

...and...

But we will work diligently to compound tangible book value at a double-digit pace which for us is an exciting prospect.

...and...

But I don't think one-time tangible book is the end of our story, not by a long shot. Certainly not for a company with such a successful track record and now such an impressive leadership position.

So this is a FANTASTIC OUTLOOK IMO:
1) On the one side they want to grow BOOK VALUE at a doulbe-digit pace
2) On the other side they think 1x BOOK VALUE for the PPS is FAR TOO LOW

So what can we expect IMO? BOOK VALUE growing to $75? $80? Or even more?
And then 1.5x to 2x BOOK VALUE means a COOP PPS of $120 to $160!