Mr Cooper Group Inc (COOP)

[p_chen]

It's really an exciting news. Given the annual $2.1 BB incomes from subs, WMI has very nice profit generating capacity. WMI for sure has the ability to emerge from CH11 by going into another industry.

In the stage of liquidation, WMI has possible additional asset values from the present value of its subs' incomes for few years.

Rough Calculations:

$175 MM x 12 = $2.1 BB

PV(future 5 years incomes) = annuity($2.1 BB, 8%, 5 years) = $7.146 BB

Assumptions:

the average monthly income from WMI subs remains the same. (I don't think it's true. I expect it grows well in the next few years.)

the discount rate is set to be a little higher, given the gloomy economy. (also the future heavy tax burdens and national debts impact on returns from US equity market and business.)

the $175 MM income generation ability is effective for 5 years.