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COOP - Mr. Cooper Group


eclecticvalue

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Here is another idea for this year. Mr. Cooper Group is one of the largest non-bank mortgage servicer in the United States. It used to be WMIH Corp which was the shell company controlled by KKR and it acquired Nationstar Mortgage Holdings. Pretty much it is a company with a large amount of NOL's. The thesis is that improved operational improvements, integrations of acquisitions, and deleveraging will make the stock re-rate. Temporarily the earnings have been depressed due to onetime expenses and changes to MtM of MSR portfolio. This should be the year the company will produce positive EPS. Also if they make a couple of acquisitions it can help utilize the NOL's faster. The NOL's don't set to expire until 2032.

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