Replies to post #636829 on Mr Cooper Group Inc (COOP)

[PickStocks]

Good question on the NOL. However I don’t think it will be beneficial to poop to utilize or how to utilize. They did have the 645 million debt a year or two ago, could have used the nol then. They did not. Although a huge asset not sure it will be of use

[Andyg59]

The utilization of the NOL is subjected to maintaing intact the pre bankcruptcy capital ratio in which the escrow shareholders are the majority.
Under the relevant IRS tax provisions the NOL can be used as a tax shield to offset any net profits derived from rolling up the subsidiaries (100% owned) into the consolidated financial statements. So all you need to ask your self is whether or not the reporting subsidiaries in this fiscal year has been reporting quarterly net profits cumulating in an overall net profit at year end. Then if the answer is yes then it would be unwise not to tap into the NOL at a consolidated level assuming the old capital ratio remains intact.

[JusticeWillWin]

Good question. In the last earnings call (see the bottom of my post https://investorshub.advfn.com/boards/read_msg.aspx?message_id=157511537) they said (among other very POSITIVE things)...

Now when we look at the stock price, we concluded that the market is too conservative about the rate at which we'll utilize the DTA

...which (for me) implies they are using the NOLs/DTAs.

Then we should see a reduction and a GREAT profit next Thursday (Q3 numbers).

Your post:

Asking based on my belief/understanding that COOP has not utilized any of it's NOL benefit.



Quote: "For WMIH to qualify for the NOL its capital structure has to be realigned at the consolidated level for which value has to flow to the escrow holders who signed timely releases"


Does this explain why WMIH/COOP did not utilize any of the $6B in NOLS when it should have been able to once the company became profitable???

Could you go a bit further in terms of explaining this scenario?

Genuine question.