Quicken Loans Rumored to be Going Public

[Gistok]

Wow... Gilbert's net worth is now $34 billion... 28th richest person on the planet... now he can finish off the Book Tower/Book Building complex by building the 81 story annex!!

[MrChrome]

As of today, I am a [[very, very small) part owner of Rocket Mortgage.

Doing what I can to support the company and [[indirectly) the city. And while more for show, financially speaking I figure it is a safer bet than any gamble I could make in the recently reopened casinos.

I am also now an owner. Dan and Jay report to ME!

[[Don't worry, this is with money I have set aside to play with)

[Lowell]

Rocket rockets out the gate. Jumps 19.5% on day one.

[Satiricalivory]

2nd highest market cap in Michigan now. Says a lot about how undervalued GM and Ford's stock is.

Also I didn't know Stryker was so valuable, they're higher than Volkswagen.

[Satiricalivory]

For the few here who bought Quicken stock, how y'all feeling now that it's surging?

Also Ford is finally back to about 13 dollars a share [[due in part because of the success of the Mach-E?). GM is doing well too.

[Gistok]

Dan Gilbert is now worth [[in 2021) $82.7 billion, [[up $32 billion in the past year) making him the 10th richest man in the world [[up from 28th in 2020).

https://www.forbes.com/real-time-bil.../#4e4855053d78

[Danny]

Gumpy Trump took its stocks public in 1990 and it worked with a price. That really saved his business for now.

Gilbert is taken another investment risk for the Rocket Mortgage stocks. It better work or Detroit's development backbone may go up in smoke.

[davewindsor]

Another short squeeze like Gamestop. Rocket Mortgages was shorted 46%, so the reddit's wallstreetbets forumers got together and jumped on it. I never really cared for this stock because they weren't paying any dividends like the traditional banks like Comerica @ 4%. But, good for you investors. Screw the wall street slime who keep shorting stocks. I always thought shorting should be illegal.

[Gistok]

^^ Davewindsor... I'm still trying to figure out Tesla....

[Satiricalivory]

Reddit didn't really go that hard on it though, they were reluctant and still are.

[Lowell]

Another short squeeze like Gamestop. Rocket Mortgages was shorted 46%, so the reddit's wallstreetbets forumers got together and jumped on it. I never really cared for this stock because they weren't paying any dividends like the traditional banks like Comerica @ 4%. But, good for you investors. Screw the wall street slime who keep shorting stocks. I always thought shorting should be illegal.

I've been a big believer in Rocket and, as a result, took a position in it. So I am feeling pretty good today. After I got in the stock flailed around and, until yesterday, I was underwater. I never understood why. The company was growing speedily in revenue and profits, it was well-run and an edge technology leader in their industry. The breakthrough was last week's blockbuster report. For example:

"Detroit's largest employer reported total net income of $9.4 billion last year on more than $15.7 billion in revenue. That performance led Rocket to announce a massive one-time dividend to Class A shareholders of $1.11 per share, or about $2.2 billion according to the company's earnings report.

"The company's net income for 2020 represented a 948 percent increase over the previous year.

"For the full year 2020, Rocket — the country's largest mortgage lender — said it closed on $320.2 billion in total origination volume, according to the report. That amounts to an increase of 121 percent over the previous year.
https://www.crainsdetroit.com/financ...-time-dividend

The price moved up about 10-15% after that but then the perfect storm hit when the army of small time retail traders on the WallSteetBets sub-Reddit championed it. Rocket had been massively shorted, up to half of its shares being 'borrowed', by hedge funds betting the share price would dive.

And, unlike GameStop and AMC, dying companies with negative earnings, that the WallStreetBetters famously championed before, Rocket is a booming company with billions in profits--so much that they issued the surprise 5% dividend.

Now the short sellers are panicking, trying to buy shares to cover their borrowing before they go higher, thus driving the share price up even more. Furthermore if they are left holding the bag when their options expire, they are on the hook for paying the surprise dividends on those shares as well as having to pay a potentially huge price for the shares.

Even after the last two days big move, the price is arguably a bargain as the P/E [Price to Earnings Ratio] is a low 13.53. [Around 20 is considered the line between under and over pricing].

If these prices hold and or go higher, as I believe they will, this is potentially very positive for Detroit development.

[mikeg19]

What happens when all of the people who bought in and drove the stock up sell off everything tomorrow? DG's net worth plummets back to normal? Well, his "normal", not our normal lol

[Scottathew]

What happens when all of the people who bought in and drove the stock up sell off everything tomorrow? DG's net worth plummets back to normal? Well, his "normal", not our normal lol

The stock price will stabilize at a "new normal" that I predict will be higher than the old normal. Gilbert's net worth will be higher than before this thread started, but no longer in the Top 10 in the world.

All around good news. RKT, a major Detroit employer, is very healthy [[according to the quarterly announcement and investors) as the pandemic is wrapping up.

It's crazy to think that if RKT takes off that Gilbert will have world-stage levels of wealth.

[Lowell]

Agree. The two day sugar high is over and its price is steadily dropping back its normal range. It will be interesting to see if it remains volatile. Nonetheless the important thing Rocket's blockbuster report. It's great news for Detroit that downtown's major business, and all the jobs that come with it, is so healthy.

[Satiricalivory]

The earnings per share is extremely low even at that high. Based on how much the company earns the price should really be at about 60 dollars a share.

I bought one at the tail end of yesterday when the stock went down, will probably buy more today.

https://www.youtube.com/watch?v=DI7R...index=4&t=316s

[Lowell]

The earnings per share is extremely low even at that high. Based on how much the company earns the price should really be at about 60 dollars a share.

I bought one at the tail end of yesterday when the stock went down, will probably buy more today.

Good move. You'll also get to grab the dividend. It befuddles me why this stock hasn't soared and why the hedge funds so massively shorted it. It has nothing but good numbers especially a low price to earnings ratio and an even better PEG 5 year price earnings growth number, both indicators of a bright future. Oh well.

[davewindsor]

Wow, why did Rocket shares hit a low of $18.78 this morning? Is there some bad news I missed?

[Satiricalivory]

Wow, why did Rocket shares hit a low of $18.78 this morning? Is there some bad news I missed?

Not really, their guidance just turned out to be mediocre for expectations.

[Lowell]

Wow, why did Rocket shares hit a low of $18.78 this morning? Is there some bad news I missed?

They had a one penny earnings miss, 89 cents vs. 90 cents, and some declines in other numbers. If find it puzzling as the company is still making tons of money, but investors are a bit like voters to politicians. "I don't care what you've done for me, I want to know what you're going to do for me next." It has recovered a dollar off the morning low.

[Satiricalivory]

I've learned that the stock market is pretty much totally irrational and driven entirely by emotions and speculation and shady dealings. It's insane how undervalued the stock is, it's nowhere near where it should be in earnings per share. Maybe once the company is added to the S&P that will change?

[Scottathew]

The issue is that stock market has a certain value for a company based on what it believes is happening at the company. That's baked into the stock price.

When quarterly earning come out and they picture isn't as rosy, the price adjusts. In this case some key numbers weren't what they thought they would be. 16% down is a pretty hard adjustment for RKT.

UWMC has their earnings call next week. They're already down ~7% today. It will be interesting to see what happens to them in the wake of their battle against RKT.

[sirrealone]

Right now most of the stock market is getting hammered. The indicies look OK because some of the big names are getting propped up, but overall, most everything has been red since March. And when you look at stocks considered small cap, micro cap, growth, or value, they're getting slaughtered no matter what. Good news or bad news, the market tanks just about every stock. Just so happens that these are the areas where retail investors made a lot of money over the last few years. So, many believe that the hedge funds are basically launching an attack on retail investors in the wake of the WSB moves against hedge funds with the AMC and GameStop stocks....which just so happened to be mere weeks before.

Rocket and UWMC are both part of these categories, so they're basically going to go down no matter what so long as the hedge funds continue to manipulate the market against retail investors.

[davewindsor]

Techs are all up this morning except RKT which fell further down to $18.48. Incredible.

[CR75]

Right now most of the stock market is getting hammered. The indicies look OK because some of the big names are getting propped up, but overall, most everything has been red since March. And when you look at stocks considered small cap, micro cap, growth, or value, they're getting slaughtered no matter what. Good news or bad news, the market tanks just about every stock. Just so happens that these are the areas where retail investors made a lot of money over the last few years. So, many believe that the hedge funds are basically launching an attack on retail investors in the wake of the WSB moves against hedge funds with the AMC and GameStop stocks....which just so happened to be mere weeks before.

I keep reading this conspiracy theory on Reddit and it makes no sense. Small-cap, mid-cap Russell 2000/3000 companies are some of the best-performing in the market right now. That's just facts.

Rocket is just being hit because it's considered "tech/growth", and that sector has been out of favor in the past three weeks. Also people expect interest rates to go higher and dampen the housing market.

[davewindsor]

I figured out why it closed at $18.09 Friday when other stocks went up and will probably fall some more next week. If you look at Yahoo Finance, Revenue estimates are projected to fall 18.4% in 2022 from 2021 [[$16.94B to $12.81B). EPS is projected to fall from $4.11 in 2021 to $2.32 in 2022. I guess I can see how -18.4% in projected sales growth is enough to scare off any large fund thinking of whether to continue investing in it. Damnit.
https://ca.finance.yahoo.com/quote/RKT/analysis?p=RKT