Replies to post #409010 on Mr Cooper Group Inc (COOP)

[UpTickMeA$AP]

Looks well thought out. Thanks for sharing! Go $WMIH!

:-D


Glta

[JusticeWillWin]

Blue, thanks for sharing! But what would happen, if the PPS doesn't decline until the end of the year/beginning of the new year and instead it would increase? Let's assume the PPS rises to 3.20$ - 3.50$ again on Jan 2, 2015. Would that prevent KKR from exercising their warrants?!?

[Large Green]

BlueFoxx, Happy Thanksgiving and thank you for your well reasoned post. There is no doubt the tax attributes are very important and there are strict IRS guidelines governing these. I look forward to something happening whether that is the start of the reconciliation process with JPM/FDIC and/or WMIH capitalization.

Regardless of what and when it happens, we are on the short end of the stick regarding waiting so another day, week, month or six months...no problem now.

Have I told you lately how much I love my NEWCO (WMIH) tradable shares AND my escrow shares?[/b]

[bkshadow]

BlueFoxx, good development...

...continued development, of researching and understanding the principles associated with IRC 382, especially the change of control regulations, and then making a well thought out application to the Strategic Investment Agreement terms and conditions for KKR's potential ownership participation in WMIH. After being airported with late weather arrivals and having free time yesterday, I'm short for a few days. One more pick up this am, then we can enjoy the holiday.

Two items, when you can, would expand your work product and understanding. First is the concept of "value" versus "share count" in the calculation of the % increases should KKR exercise the warrants. This supports your theory component regarding the disadvantages of the rapid rise in PPS in December 2013 on another front (aside from the immediate tax consequences on exercising the warrants as ordinary income on the gain over the warrant exercise price). Second, again, is the 3-year rule. Specifically, there is no beginning or ending period of such, it is a rolling application any time there is a change in the 5%er (increases only). The trigger for testing dates can happen over and over, and there is no 'clearance once one testing period has been passed and met if there is another change in 5%er.

Again, really impressive research and practical application to our unique situation with a theory that is supported by such. Enjoy the holiday.

[BBANBOB]

Good read

[wildboarhog0]

Nice read bluefoxx! Just curious if you will add any WMIH shares With an escrow payout?

[Boris the Spider]

Thanx Foxx. Appreciate your time and efforts. I agree with much you say, but the odd thing now is WMIH will run up into the end of the year, not go back to ~1.70ish....no way Jose. That could be a quandary for KKR. We could see a very significant run-up into end of year now, but I may be wrong.
I also agree that the escrows will be paid very soon which will fuel tremendous buying by shareholders in WMIH stock out of loyalty/justice reasons. The PA was finalized on 9/25/14 so the asset info is now known and must be released back to the estate soon.

The next month will be very interesting for sure, but 2015 will be amazing for us all.

[drrugby]

Blue, Happy thanks giving and interesting DD. Got to like the investigative reporting..

GLTA..

Go WMIH Go..

DrR..

[clawmann]

Please explain again why you think KKR would benefit from a lower PPS in the near term. I don't see the logic.

[Donotunderstand]

This BOD can not issue equity to KKR (warrant exercise) until Jan 1, 2015. So, the stock had to go back down to the strike price KKR needs to exercise w/o affecting their bottom line

The higher the price of the actual stock the more profit KKR makes when it buys shares at the warrant strike price

Thus I fail to understand how the sentence above mine is true or correct or logical

KKR did not need a low price - it was disadvantage to them. A warrant like an option is the right to purchase at price X

So the more the stock is higher then H the more the VALUE and gain on exercise of a warrant