Mr Cooper Group Inc (COOP)

[Milk Duds]

Will, I was away from the PC, so I was shocked when I finally heard about today's gains.

After learning about the plan for equity to have control of the new WaMu (WMMRC), I have to say, I was stunned. Not because I didn't expect a positive outcome, because I'm sure you know I did, but because the news was released during trading hours seemingly out of the blue.

I strongly believe that this news was purposely released to compel JPM and the FDIC to up their offer.

We all expected a new "Global settlement" including JPM and the FDIC. I think that negotiations were heading that way, but the offer (from JPM/FDIC) was not to the EC's liking.

So what would you do if your adversary isn't offering enough in a settlement? First step: Publicize that you will be suing them. Second step: Take them to court.

From all indications, we (equity) are now partners with the hedge funds. The hedge funds are even supplying the funds to re-start the litigation against FDIC/JPM.

It boils down to this: Previously the hedge funds were siding with JPM/FDIC, and so they didn't want any good news--that is, good for shareholders--publicized. Now the hedge funds are siding with equity. They now want good news for equity to be publicized. It puts more pressure on JPM/FDIC to up their offer. The news leak increases the pps of all WaMu stock, so that JPM/FDIC can't say their offer is acceptable compared to the current pps.

Edit: I think we are about to break through the previous highs we enjoyed in January 2010. If you recall, that was when the news leaked that a POR was coming, but before we learned the POR would wipe equity.

Well, we are right back to that point again! But this time equity will not be wiped, and we can sue the hell out of our adversaries!