Mr Cooper Group Inc (COOP)

[fsshon]

I want the EC to leave equity intact or R/S us to accommodate the raising of future capital. I know I am going to catch a "TON OF FLACK" for this, but we all must look into the future and value the investment after the litigation awards have allowed the company to build a bullet-proof balance sheet. Most of you know what I am talking about.

I have heard on this board that many of you feel $2 PPS is OK, $4 PPS is OK, $8 PPS is OK, $12 PPS is unobtainable and $24 is a "pipe dream!"

Well put it in prospective and you can figure it out..

O/S is now 1.7 Bil.. It is impossible to raise funds if you have this type of O/S. So the EC agrees that the stock to not be cancelled, will be R/S 10-1.. I know don't get your pantie's in a wad yet..

10-1... Current PPS .20 X 10 = $2
5-1.... Current PPS .20 X 5 = $1

New O/S 170M.. or 340M

Let's say WMI has a total of 1.9 Bil in cash and very little if any debt after they leave BK. That cash is leveraged by them and the market. The market will not value the stock at even, it will probably go 4-1. Or 400% of the cash. WMI will still be litigating (through Quinn and Venable) against JPM and FDIC and future awards will be expected, The market will also know this.


340M = $5 PPS just on a 1 to 1 basis of valuation.
170 M= $10 PPS just on a 1 to 1 basis.

Current price is .20 you would basically see a 1000% increase in stock price on a 1/1 price basis.. What if the market decides WMI's cash is worth 4 time as much..

Now your stock is worth $20 PPS on 1/5 and $40 on 1/10

You see WMI can not emerge from BK with the current O/S the way it is, it has to decline considerably in O/S, because there are filings in the BK court that state one of the reasons for the seizure, is because WMI had its hands tied and could not raise more capital because of the anti-dilution clause in the TPG contract. If WMI is to raise more capital in the future, if it finds it needs to, it must be able to sell capital shares.

Now add in the excess cash that would be sccumulated once the case is prosecuted and the awards are issued to WMI. Let's just focus on the Cap Contributions and the Intellectual Property claims for future cash.. It will make your new shares accelerate and before you know it WMI will be $50 or $100 depends on O/S.

What will WMI do once out, ANYTHING THEY WANT with that kind of money.

I am now ready for the backlash and the "butt whooping" I am about to receive. Bring it I am ready. Please Educate me !!!

~Fish~