Replies to post #533932 on Mr Cooper Group Inc (COOP)

[clawmann]

I think the higher pps will attract more institutionals and result in expanded coverage by analysts. This, in my mind, will very much reduce the potential for the manipulation that characterizes most - if not all - stocks that trade below $5.00.

As for retail, there are advisory services like the Motley Fool that may take an interest. There are a lot of retail investors, especially older folks, who shy away from penny stocks but may well take an interest in an $20 stock. Retail investors will still be around, but they will be a different type of retail investor. This will also help buffer the stock from manipulation.

If the RS were being done- as is the case with many penny stocks - just to raise the pps of a failing company, I would get out right now. But I don't see this as the motive behind WMIH's proposed RS.

[jerrylev]

Just like anything, unlike it is obviously bad, I will take a wait and see attitude. Just like the stock didn't crash after the R/S news was announced but rather went up. I also don't worry about any short term crash either because this company has real income and revenue and growth.

And lastly, we are becoming suspicious about everything after what went through WAMU for the last 10 years. But now this is the past and NSM has nothing to do with WAMU but simply merge with WMIH to get the NOL. If the NOL law allows, NSM could merge with Toys R Us for the NOL and it does not matter.

And so what makes us think that there is any stock manipulation but NSM and KKR management are honestly and sincerely wanting to build a mortgage giant and they are willing to carve 10% to 20% of the shares for retail while owning the rest?

Remember that we used to be a 200M company and now 2B company but it is still peanut. Companies like KKR, Fortress / Softbank and even NSM / Jay Bray have bigger plan than just manipulating a dollar stock which will become a $20 stock through an artificial R/S that is only for optics. I would say that they want to build Mr COOPER / XOME into an Amazon of mortgage.

And so until we see evidence that shows otherwise, let's assume for a while that this R/S is only for optics and to make COOP looking like NSM, but there is no ulterior motive and Jay Bray will build this company into a giant. Just like we criticize others for keeping associating COOP with the old WAMU, let's not start a new theory such as stock manipulation.

Of course, I am not naive and so are you, that we won't reverse our opinion the moment that we see evidences that show the opposite. But let's the poor kid grow up without any prejudice first.

[tzebedee]

Great post.. they're squeezing us.