Replies to post #493114 on Mr Cooper Group Inc fka COOP

[JusticeWillWin]

“assumes“ could also be read as a merger with the WMI-LT

[es1]

JWW this has probably been asked before but when we released did we agree to accept shares in a company we didn't ask to invest in?
Please forgive my ignorance here.

Say there is enough assets that when sold will yield me $1 per released common.
But instead of my 1 dollar they give me a share of wmih. Because there is suddenly a mass of shares issued the pps drops to .50 before I ever have the ability to sell.

They forced a loss on me.

I agreed to release to get back whatever dollar value is left.
Not to have them decide I would invest in a losing stock in a company I don't believe in.

That seems wrong to me somehow like it wouldn't be legal.

[ItsMyOption]

justicewillwin, nice post and well thought out BUT someone correct me if I am wrong but I thought Equity Escrow holders can only receive cash and not shares from new company.

How could a possible share-for-value scenario look like -->

Only if AZ's and ron's theories come true!!!

Some facts:
* WMIH has currently 206M outstanding common shares @ $0.75
* 30.7M warrants for KKR @ $1.32
* 30.7M warrants for KKR @ $1.43
* 10M commons from Series A if they convert
* Series B currently convert @ $1.75 and are converted to 342M commons

Let's make some assumptions:
* $10B coming back to the WMI-LT
* these assets are illiquid and must be managed by a company
* WMIH does a combined transaction
-----> it buys a company that can manage these assets for around $600M (the cash from the Series B ==> 342M new common shares)
-----> WMIH then "assumes" the $10B from the WMI-LT and issues 2B new shares, out of the 3.5B authorized shares which are ditributed among the escrow holders 75%/25%

Total outstanding shares is then 206M + 30.7M + 30.7M + 10M + 342M + 2,000M = 2,619M shares

Total equity of WMIH is then $154M + $600M + $10,000M = $10,754M

--> PPS = $10,754M / 2,619M = $4.10 (at the day of the announcement)

If $20B come back instead of $10B:
--> PPS = 2 X $4.10 = $8.20 (at the day of the announcement)

If $25B come back instead of $10B:
--> PPS = 2.5 X $4.10 = $10.25 (at the day of the announcement)

and so on...

They close somewhere below $1, announce such a deal pre-market and open with one of the PPS above, depending on the value of the assets coming back to the WMI-LT

Note: In the PPS I did not consider any positive P/E Ratio, only pure equity!

Possible? Comments? Flaws in my calculations?!?

Again, only if AZ's and ron's theories come true!!!

[yes9]

I REALLY LOVE THOSE NUMBERS $$$$$$$

[PickStocks]

So what we are saying now, is that WMIH was never going to buy or merge with any company the blown 11 milion is just that blown. WMIH was waiting for the closeout of the BK....That was their business plan......we have two execs and a BoD we are gifting shares for what waiting........


can not wait for the closeout so this theory can be blown as well....

[UncleBo]

"WMIH then "assumes" the $10B from the WMI-LT and issues 2B new shares"


Justice, I think you meant "Purchases", no ?

Uncle Bo