Mr Cooper Group Inc (COOP)

[etzetrade]

I would like look from differet angle. IMHO

Before TPS screwed up the settlement, the WMI2 has total 350 million shares corresponding to 160 shares if HFs are the only shareholders. The par value is $1.00/share.

Therefore, P+K and U are two different groups for the balance of 190 million shares. The total value of the WMI2 including NOLs only is $8.40B, not even consider BOLI/COLI, etc. The commons and preferrds have 95 million shares respectivefully.

Since HFs are going to use the NOLs itself. Therefore, we should enjoy the full value of NOLs, which is 8.05B + 350M equal to $8.40B. THAT IS THE ONLY REASON THAT WE KEEP HFs. Otherwise, we could kick them out if JFR rate (0.25%) applys.

The market value is $24/share (i.e. $8.4B / 350 million shares). U is going to have reverse split of 20:1, and total share is roughly closed to 85 million shares @24.00/share, or equal to $1.20/share.

P and K could have 65% of the FV ($24 x 95 million share / 3.5B).

H is the winner.

After TPS jumps in, IMHO, HFs still want to have 160 million shares vs balance shared by U, P+K and TPS. HFs's point is that they could use NOLs whicno longer needs to be discounted. But MW makes no money probably @$0.80/shares before reverse split. The settlement broke off.