Well, a couple billion out standing in my opinion it probably will drop. Of course I got alot of shares..I’m not gonna be trading in and out. I’m gonna let it go through the drop and just hold because I think it’s gonna be a monster down the road. They’re gonna be cradle to grave they’re gonna be able to sell the home originate the mortgage service the mortgage and handle one out of six US mortgages in the country..that’s huge and with cost savings and additional revenues it may equal out the dilution. Hopefully Jay is on a stock performance deal.
That would be a good time to enter a position in my opinion in RKT.. IF it drops.
When I think of dillution...it's a company that is issuing stock to raise capital....with no real benefit to existing shareholders.
Now when I look at COOP RKT deal....I see 700 million shares being offered in exchange for profitable company,that is roughly valued at 6-7 billion. For easy math I will work with 7 billion.
7 billion /700 million shares being issued for the purchase equals 10.00 per share. On top of that there will be a savings of appr 400 million per year .
So IMO...dilution is very minor issue. More important is the long term value...I ran it by Grok,and it had some interesting things to say about the long term benefits of the partnership. I will post it later.