RKT's been beaten down by profit taking and short covering, since the COOP conversion happened.
Dropped from $20+ to below $17 today. I'd been looking for a chance to add to my 60,000 shares that I already have, and this looks like an ideal entry point. AND tomorrow, all COOP holders are going to get $2 Dividends per share of COOP, that they got converted to RKT.
Thats \~$130 MILLION coming into ex-COOP shareholders accounts, and guess what \*many\* (but not all) of them are going to do with that cash.... Turn around and BUY MORE RKT.
We'll know if I'm right, by Friday. DYODD.
UPDATE / EDIT - I was clearly wrong, and closed out my position for 40% loss this morning.
I believe I know what's happening, and why.....
IF I'm correct, this will create a massive buying opportunity shortly in the coming weeks, for RKT.
Looking at the current market data, it looks like the current RKT Market Cap has been increased to $45B+, with the COOP acquisition/conversion, but RKT's EBITDA has not been updated yet to include COOP earnings, and is still showing as $900M.
The "algo's" are looking at that EBITDA to Share Price Ratio, and going "45x earnings? Waay overvalued by 25%. SELL".
So IF I'm right, and the "algo's" were comfortable with RKT at $20 prior to a 25% increase in the float for "NO" increase in EPS/EBITDA, the price is likely going to drop to around $15 (-/+ $14), prior to earnings release/update.
ONCE RKT's earnings include COOP's ($600M+ earnings), this should gap up to $18-20, post earnings, and definitely $25 by around mid-'26.
