בס״ד

Closing One For 550% & Opening Another on the Mortgage Thievery Front (COOP, ACI)

Posted on July 11, 2022

We’re backing up the truck today for a haul of cash – not gas or Bitcoin or anything else that’s value-deranged.

But before we get there, we have one to close for a very handsome return.

It’s our ACI trade, which appeared in your inbox on June 15th in a dispatch called The Early Bird catches… the Monkey Pox.

The trade urged you to sell the ACI July 15th 27/29 CALL spread for $0.95 and buy the ACI July 15th 29/27 PUT spread for $1.05.  Total debit was $0.10.

And now?

The CALL spread can be repurchased for $0.60 (0.65/0.05) and the PUT spread sold for $1.25 (1.95/0.70).

Execute and you walk with $0.65 on just $0.10 spent.

And that’s a 550% return.

In under a month.

Chances are you’ll pocket a good deal more, because S&P September futures are down before the open by 25 points as we write.

Good on New Zealand Blake for taking on multiples of the trade.

And now we sit down with Mr. Cooper (NASDAQ:COOP) the mortgage machers from Coppell, Texas, who will steal from anyone who’s interested in buying, selling or otherwise transacting business in relation to a single-family home.

And fundamentally, you never saw a company look so good!

FUNDAMENTALS

  • After falling 30% in the last four months, the company’s P/E now stands at a lowly 1.97.
  • Dividend Yield is ZILCH.
  • Price to Book is 0.69.
  • Beyond that, Debt to Equity is a troublesome 2.17, and
  • Earnings for the next five years – according to analyst consensus – are expected to FALL by 8.54% per year.

It appears investors are pricing in a top in the housing market, as the charts (below) will show.

This is the daily –

The G-d of Israel is with all those who stand the test.

Who don’t give up.

And who are on the side of kedusha and Truth.

With kind regards,

Hugh L. O’Haynew

 

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