Mr Cooper Group Inc (COOP)

[Billiam_2]

$12+ is a safe bet. Most of the legal analyst's both boards put it at around $24/s. The reasoning goes like this:

1. Book value of WMI on June of '08 was $26B see their 10Q.

2. Aug. '08 TPG put in almost $8B. Capital infusion. It was originally preferred stock but was converted to commons. This is what Bondermann and the Texas lawsuit is about.

3. Independent auditors have placed a book value on WMI of around $52B.

4. In a court case damages could run as high as 3X book value if it goes the distance to a jury trial.

5. Our legal analyst's both boards think Weil would ask a minimum, 2X book value for a settlement.

6. So, 2X book value at low number $26B would equal $52B settlement money. Subtract $8B liabilities, $4B P's & H's (bonds are part of WAMU Bank not WMI so not accountable here).
That leaves $40B for the commons. $40B/1.7B O/S equals $23.5/s. End of story.

7. Interesting to note: All legal minds of both boards seem to agree on this scenario.