Rocket Companies Inc (RKT)

[SamuraiProgrammer]

boarddork, interesting post :)

We agree on a lot.

Thanks for a well thought out discussion... No emotion, no BS, just facts or well founded opinions.

Here's my thinking as we all are flying blind.

I think that is as true a statement as 'the sun will rise in the east'.

I think that RKT's large amount of 'authorized' but not 'distributed' shares surely have a dilutive effect right now on our struggling share price.

I agree in a limited fashion but in my opinion, the lethargy of our stock price lately has been more to do with uncertainty in the broader market. Just my opinion and I am not disputing you outright. Many companies keep large amounts of authorized but unissued shares.

Of course, if its for our legacy assets, then it isn't dilutive as there is something for RKT to gain from giving out those shares.

I agree with that and extend it so that any reasonable acquisition that adds synergy at a reasonable price would also not be dilutive.

I'm not sold at all on the theory that these authorized shares of RKT are even for legacy interests who released.

I agree.

There can't be that many assets left to unwind after all this time and the 3% refi craze.

This is where things get interesting. Yes, loans may have been paid off, but do the trustees have an obligation to reinvest in some fashion? At the very least, I would expect the cash to be in Certificates of Deposit or T-Bills, T-Notes, or even T-Bonds if they knew this would go this long and therefore only able to be liquidated at maturity (without a penalty). If so, every hiccup (delay) in events could conceivably cause a reinvestment and a new set of maturity dates down the road. Or, if interest rates fall enough and the timing window is right, more profit.

What's left to wind down in the Trusts is surely under the 10% buyout threshold,

If I understand you correctly, I don't know if that matters. Whatever trusts set up by WMI to cover the required amount of 'sold' loans they had to keep would have been entirely made up of that portion that was kept. I'm not sure I am on solid ground here but that is what I think.

But the lions share?....all that cash, is a lotta cash...and as AZ says, it's tracked by the DTC for the benefit of those who released

I hope that is true and if it is that large a movement of cash will cause rumblings across the market as people are suddenly looking for a new place to put it. There are only so many mattresses to hide it under. LOL!

I just cant shake the feeling that the legacy BK remote physical assets and cash are just gonna be on ice, until all claims and administration are released.

Agreed. And it is difficult to say that it is imminent. However, see my last point...

until there is clear title all around.

I believe that the titles are clear or can be made clear quickly. Hell, set Grok or ChatGPT on it. Then if someone squeals bloody murder, make them testify under penalty of perjury and investigate. Hold people's feet to the fire until the truth comes out. Look what congress did today (when was the last time you saw only one nay vote).

I can't help but feel that there is still a large chunk of time left before we know the truth.

I agree wholeheartedly. I also suspect part of the calculation will eventually come down to how much of the pie do we give to the plebes to make them fat and happy enough to shut up and go away. I fear another Russian Roulette game of sign this document or be left out in the cold.

And why the same trolls are still trolling, since there are still things left to sweep under big rugs

Ironically, their clamoring is my greatest motivation to believe.

Finally....

IF ANYONE IN THE GOVT IS WATCHING - IF THESE FUNDS EXIST, ENCOURAGING TIMELY DISTRIBUTION WILL CAUSE ONE HELL OF A STIMULUS TO THE ECONOMY.