Replies to post #157254 on Mr Cooper Group Inc (COOP)

[Chiron]

One thing you have to remember is that the MM's don't want this running. Bopfan made a great post about this yesterday:

"My figure was more conservative ($2) range, which initially led me to suspect that the current Q price ($.28) is a 80% to 90% undervaluation (if you value Q without a litigation recovery as between $2 and $3)-- therefore closely paralleling the 90%+ discount on preferreds.

Given the inconsistency in discounting these two classes similarly (i.e., class lower in priority should be discounted more) I scratched my head and reappraised things. My (incomplete) answer was in the MMs' continued mistreatment of the preferreds, which I've no doubt would run to 1/3 of par if untethered. If the Qs were left to run on their own I think they'd be at $1 by now, which is at least in the neighborhood of our respective calculations, though it still leaves the problem of what is the value from which Q is discounted if it is trading @ $1? One could conjecture that the market disagrees with our $2 to $4 figures and is discounting Qs on a litigation (i.e., higher) recovery, but I address my doubts on this later.

I say this because if Ps run to $200+ (as I fully expect they will sooner rather than later, which would be a 80% discount), and Qs go to $1+, it would seem the Q price is being discounted against something much higher than $5.

If this conjecture has legs, we can look at the past (severe) discounting (i.e., >99.6%+) in the case of the of the preferreds for the market's message on the Qs, if there is one, which I doubt.

My personal opinion is the market has no idea where the Qs are headed, but knows that unfettered they'll go to $1.

So, with no par benchmark the market can't accurately discount the Qs, therefore $1 doesn't mean the market thinks they'll go to $10 or $25. "

http://messages.finance.yahoo.com/Business_%26_Finance/Investments/Stocks_%28A_to_Z%29/Stocks_W/threadview?bn=86316&tid=361964&mid=362103

[utvolsfan13]

A lot have speculated that the low volume means there won't be anything big happening tomorrow. If it were known that nothing big would happen, wouldn't there be a lot of selling volume? I believe the only logical conclusion is that nothing is being leaked about this case. Otherwise there would be high volume regardless of the direction.