Zitat astockinvestor:
delecorp.delaware.gov/tin/GINameSearch.jsp
enter: WMI INVESTMENT CORP
--------------------------------------------------
Zitatende
MfG.L:)
|
WMIH in position to leverage its resources?
www.boardpost.net/forum/index.php?topic=6879.msg90696#msg90696
Zitat kinged:
From press release: Tagar Olson, Member and Head of KKR's Financial Services team, stated, "We are pleased to participate in the offering and invest additional capital in WMI Holdings, as we continue to see opportunities for the Company to grow and diversify its platform. Having partnered with the Company for over a year, we believe that WMI Holdings is well positioned as an acquirer and we believe it is capable of leveraging its resources to drive value as it executes on its acquisition strategy."
OK. What resources is he talking about? WMIH is going to use these resources and use it for leveraging?
Added from release: WMI Holdings, formerly Washington Mutual, Inc., consists primarily of WM Mortgage Reinsurance Company, Inc. ("WMMRC"), a wholly owned subsidiary of the Company that is domiciled in Hawaii. The Company's primary business is a legacy reinsurance business that is currently operated in runoff mode by WMMRC.
Not much there as far as a platform for growth. Interesting.
Let's take this in another direction. I give WMIH $600mm in capital to go buy a company. Am I, and my other investors, now the resource? WMIH only has a company in runoff mode. What is the platform described in the release? Now that WMIH has $600mm (less fees), what can they possibly do with that money? How can they leverage that money to make a purchase without risking NOL usage which is the primary value that WMIH brings? The NOLs are the primary value that WMIH brings, right?
If WMIH can acquire a company for about $600mm in cash and keep its NOLs intact, they can only purchase a company that has net profits of maybe $60mm per year (purchasing a company with a 10 PE for basic math not considering assets/liabilities of this company.) Even if this company was paying 30% in taxes, the NOLs could only be used at a clip of about $18mm per year. Hardly worth sneezing at, right?
What does KKR and other investors see that could create the kind of return demanded for this type of risky investment? What exactly is that platform that WMIH is holding that is so valuable? Huh? In what form is the leverage that is going to be used to grow the company at a clip that provides a reasonable return for these investors (taking an equity stake in the company)? Is it organic growth that provides a road to more profitability or is it acquisition growth that provides the profitability to use those NOLs?
I have not been able to find any reasonable answers to these questions that could merit the type of investment that WMIH is taking on here? If you said that WMIH has a banking charter or something of "real" value, then I could possibly understand the underlying motivation to be involved with WMIH. If all that is there is a shell with no leadership and a company in run-off mode with some cash and no debt, why not just start my own company with $600mm and create a model whereby the company grows by acquisition in some line of business and then grabs a company with some NOLs to shelter taxes.
Where am I going with all of this? Is there something deeper to WMIH that is not sitting there in the financial statements or is there a way for WMIH to leverage itself to generate an acquisition of dramatically higher valuation that could actually make use of something closer to $6 billion in NOLs? Has to be one or the other. In other words, either you believe that WMIH is going to generate a company with much more value by creating a massive tax shelter through its acquisitions or you believe that WMIH is going to create a much larger company from its "unknown" platform and "leveraging" capabilities which is what KKR hinted at in the PR.
Let's just throw it out there. Is there any possible way that the FDIC-R is holding non-cash assets that could end up with the estate (WMI-LT) that could, in turn, end up with WMIH (in exchange for cash or value)? Is there any possible way that KKR and other investors anticipate that WMIH could end up with those non-cash assets that will provide a platform and leveraging capabilities for WMIH which led to their capital infusion?
Zitatende
MfG.L:)
|
Wertung | Antworten | Thema | Verfasser | letzter Verfasser | letzter Beitrag | |
46 | 13.508 | █ Der ESCROW - Thread █ | union | moneymoagi | 28.04.24 21:29 | |
60 | 67.451 | Coop SK Tippspiel (ehem. WMIH) | ranger100 | Snowcat | 28.04.24 08:49 | |
162 | 86.765 | COOP News (ehemals: Wamu /WMIH) | Pjöngjang | JusticeWillWin | 25.04.24 15:30 | |
8 | 1.310 | WMIH + Cooper Info | Orakel99 | lander | 24.04.24 16:54 | |
349 | 198.955 | Wamu WKN 893906 News ! | plusquamperfekt | union | 10.03.24 17:21 |