Wish us luck
Anyone got a link, Jay Farner is live on Tech Check
https://preview.redd.it/alga1xxpllj71.jpg?width=600&format=pjpg&auto=webp&s=d0070df0a7463cb81dbb7217188de1829db72197
https://www.housingwire.com/articles/why-jay-farner-is-puzzled-by-rockets-disappointing-stock-price/
Does anyone have a subscription to housingwire and can post the article? Pretty please?
This article is from Nov 2020 but it’s still a very interesting read
Thanks!
Because he also thinks the stock is shit
Easy 2x from here if he ACTUALLY thinks this stock is worth $40
I wonder why they’re not buying?
https://www.cnbc.com/video/2021/05/06/rocket-companies-ceo-short-squeeze-earnings.html
Rocket Companies (NYSE: RKT) CEO Jay Farner will join “Mad Money” on Wednesday night to discuss the company’s earnings.
What To Know: The show airs at 6 p.m. ET on CNBC.
"Jay will discuss Rocket Companies’ strong Q3 earnings report and the RKT stock performance," according to the company.
Rocket Companies reported adjusted revenue of $4.74 billion in the third quarter. Revenue was up 163% year-over-year and came in ahead of the Street consensus.
Farner will also share insights into the mortgage industry and what impact the pandemic has had on the housing market.
Related Link: Analysts React To Rocket Companies Q3 Earnings
Why It’s Important: Last week, Cramer shared his insights on Rocket Companies after a question from a show caller.
Cramer said Rocket Companies might be a “perfect stock to own.”
The CNBC host sees low interest rates, an exodus of people moving from the city to the suburbs and a Joe Biden election win as potential catalysts for Rocket.
RKT Price Action: Rocket shares are down 2.8% to $21 at publication time.
whyy is no one talking out this?
"Rocket Companies (NYSE:RKT) declares $1.11/share special dividend." it looks like this will pay out if you are holding over the next month or so....
Also why is RKT is being shorted so much? I am curious to here everyones thoughts on this... I bought some calls earlier and went in on 5 shares (not a big baller yet)
EDIT: well my call options went through the roof today lmao! Should have bought more.
EDIT 2: so sad yet so happy
Thanks!
Edit, from press release: A live webcast of the event will be available online at ir.rocketcompanies.com, or by visiting morganstanley.webcasts.com. A replay of the webcast will be available on the Investor Relations section of the Company's website within 24 hours of the conclusion of the event and will remain on the site for one year.
https://newsfilter.io/a/f82f3b45226b6f4dac6903f972c722f2
"$RKT stock price too low imo"
- Jay Farner
Q: Are you happy to be a Reddit stock? A: We're on the business over 35 years, we're focusing on long term business, want the stock goes up and up for the right reason.
I DON'T KNOW YOU JAY FARNER! STOP PRETENDING TO BE FRIEND!
Seriously, why isn't there an option to block annoying ads? I am happy to listen to ads. But no Jay Farner. I should be able to block those I don't want to listen to.
[This is about a spotify ad. Not sure if this the right sub.]
I’m honestly shocked that Inman wrote about this but glad they did. Here is the whole article (although for once they didn’t paywall this article)
Despite saying it had paused all federal political donations after the Jan. 6 attack on the U.S. Capitol a year ago, the National Association of Realtors was the second biggest donor among trade groups to the campaigns of lawmakers who voted against certifying the 2020 election results, according to a report from Citizens for Responsibility and Ethics in Washington (CREW).
After the insurrection, NAR and Rocket Mortgage pledged to pause all federal political donations and review their political spending while Zillow and Airbnb committed to withholding support from lawmakers who voted against certifying election results. At the time, NAR faced calls from some members for changes to its political action committee, which has historically donated to lawmakers who support real estate issues, regardless of their stances on other issues.
“NAR will continue to closely monitor events in Washington in the days and weeks ahead in order to ensure our political participation most closely represents the will of our Realtor members and the best interests of American real estate,” a NAR spokesperson said on Jan. 11, 2021.
Similarly, that same day Rocket Mortgage CEO Jay Farner said the company would suspend its political donations “as we contemplate the role corporations play in the political process.”
In a statement to @crainsdetroit, Rocket Mortgage CEO Jay Farner says the company “will be suspending all political giving as we contemplate the role corporations play in the political process.” pic.twitter.com/vBHJiE4Vso — Nick Manes (@nickrmanes) January 11, 2021 That was then. According to CREW, a nonprofit nonpartisan watchdog, Zillow and Airbnb have kept their commitments, while NAR and Rocket Mortgage have resumed contributions to some lawmakers who voted against certifying the 2020 election results.
According to CREW’s report, “The Corporate Insurrection: How companies have broken promises and funded seditionists,” since Jan. 6, 2021, more than 700 corporations and industry groups have given more than $18 million to 143 of the 147 Republican members of Congress who voted to overturn the 2020 general election and to two political groups that will support them in the midterms, the National Republican Congressional Committee (NRCC) and the National Republican Senatorial Committee (NRSC). Those 147 lawmakers have bee
... keep reading on reddit ➡1. They went public during the biggest housing boom of all time.
They wanted to make their employees shareholders of the company and the only way to do that was by going public. Furthermore, they want to use their stock as currency to acquire more FinTech to put them into the mold. Lastly, better access to capital markets.
2. Their ownership structure is what is holding the stock back.
They’re not throwing in the towel and saying their growth story is finished. They have been on this journey for 36 years and have been growing since the beginning. They're on a mission here to build something incredibly special. Jay and Dan believe they have something the world's never seen before (often calling what they are building the Amazon of finance). According to Jay, Rocket Companies is in inning three of this journey. They watch how many shares are trading daily and believe there is still plenty of float out there for anyone that wants to get in. Since going public, they have added Rocket Auto, Rocket Homes, Rocket Solar, Lendesk and a few key partnerships such as Intuit. They wouldn’t be investing into these other verticals if they just wanted to do a cash grab and hose investors. They don't want to give more shares to investors because investors aren't even buying the shares they have offered. So, they will hold onto the majority of the company because they believe in the future. It might just be me, Dan and Jay holding when it is all said and done. I am okay with that.
3. Dan fleeced investors by selling stock at $25/share.
*The man has worked for 36 years on this company he started out of his house. He went through the steps to take the company public (for reasons already addressed in bullet point #1). He is entitled to sell some shares. However, the amazing thing about Dan is his philanthropy. He is committed to giving back to the community and helping those in need. The stock sold ($500 million) is to be used over the next 10 years to help those in need. This wasn’t sold so he can buy beachfront properties across the world. To me, I feel Dan was entitled to sell shares for all his hard work, but it goes to show you the human he is by using the proceeds to give back. Also, he could have sold at $4
... keep reading on reddit ➡* The purpose of this document is to outline why I believe Rocket Companies, ticker symbol: RKT, is currently being undervalued by investors. With everything that has been accomplished by Rocket Companies since going public, I just have one question for all investors: How is Rocket Companies trading below IPO? After going public, Rocket Companies has only continued to grow, reinvest in their businesses, and reimagine how to simplify complex transactions.
The Basics:
· Rocket Companies IPO happened on August 6th, 2020 at $18/share.
· Rocket Companies has been in business since 1985.
· Rocket Companies has 24,000 team members across the United States. Its flagship company, Rocket Mortgage, has been named to Fortune magazine’s list of “100 Best Companies to Work For” for 17 consecutive years.
· Rocket Mortgage ranked highest in the country for customer satisfaction for primary mortgage origination by J.D. Power for the past 11 consecutive years, 2010 – 2020, and also ranked highest in the country for customer satisfaction among all mortgage servicers the past eight straight years, 2014 – 2021.
· Rocket Companies, Rocket Mortgage's parent company, ranked #5 on Fortune's list of the "100 Best Companies to Work For" in 2021 and has placed in the top third of the list for 18 consecutive years.
· Rocket Companies includes but is not limited to the following: Rocket Mortgage, Rocket Homes, Rocket Loans, Rocket Auto, Rock Central, Rocket Innovation Studio, Amrock, Core Digital Media, Rock Connections, Lendesk, and Edison Financial.
· Rocket Companies has a client retention north of 90% (highest in the industry and only matched by subscription services such as Amazon Prime and Netflix).
· Rocket Companies is based on 20 philosophies that they call ISMs. These are the core principles that drive all their decision-making and unite them around a culture of excellence.
Since Going Public (Use CTRL + Click To Follow Link To Article):
· October 14th, 2020: Mint and Rocket Mortgage Reveal New Technology to Foster the Next Generation of Financial Empowerment
· January 7th, 2021: [Rocket Mortgage Super Bowl Squares Sweepstakes Returns for Super Bowl LV After Awarding $1.75 Million in Last Year’s Big Game](https://pressroom.rocketmortgage.com/2021/01/07/rocket-mortgage-super-bowl-squa
... keep reading on reddit ➡Obviously, the big news of the day is Rocket Companies acquire Truebill. So, let's take a look at the who, what, when, where and why. This will allow us clarity to see that Truebill Fits the Bill!
Who: According to their website, Truebill states, "Our mission is to empower people to live their best financial lives. We offer our members a unique understanding of their finances and a suite of valuable services that save them time and money - ultimately giving them a leg up on their financial journey." Furthermore, their 6 core values are:
- Focus on members
- Take ownership
- Get stuff done
- Prioritize data
- Enjoy the journey
- Support personal growth
What (happened): Before the day started, Rocket Companies stated they were sitting on $5.1 billion and looking to acquire companies that fit into their mold. Well, they decided to use $1.275 billion to purchase Truebill in an all-cash transaction. Thus, reducing their cash on hand to: $3.825 billion. When a company acquires another company, typically the share price of the acquiring company (Rocket Companies) falls, while the share price of the acquired company (Truebill) rises. Since Truebill is not a publicly traded company, we did not get to see that in action today. The reason this event occurs is because the acquiring company is typically paying a premium to acquire the company.
When: The current expectation is for this deal to close by the end of the year. Therefore, Rocket will have Truebill in it's portfolio for the entirety of 2022 and will be able to use the last 11 days of the year to try and quickly get Truebill integrated into their systems to start off 2022 with a bang.
Where: Where did this move come from? Well, Rocket Companies CEO, Jay Farner, has been adamant about being classified as a fintech and growing other verticles of revenue streams. While it may seem like this move came out of left-field, if you listen to every interview he has given recently this acquistion shouldn't come as much of a surprise. But, let's now look at the last piece to see WHY it all makes sense.
Why: So, why does this acquisition make sense? Well, there are a variety of reasons actually. First, they are in the financial services sector, a place Rocket wants to get into more. They boast approximately 2.5 million members. 70% of these members DO NOT OWN A HOME! Let me repeat that, 70% of these members DO NOT OWN A HOME! Rocket is interested in tapping into these clients because thi
... keep reading on reddit ➡The purpose of this document is to break down MSR and try to understand how this will impact Rocket Companies going forward. “When I say MSR or mortgage servicing rights, I still talk to a lot of analysts, investors who aren't even exactly certain what that means. So, there's an educational component to it.” – Jay Farner. This is what we will be looking at today.
What are Mortgage Servicing Rights (MSR)? Mortgage Servicing Rights are sold by the originator of a mortgage to another financial institution, which then takes over the administration of the mortgage, which includes such tasks as collecting payments and forwarding them to the originator. The original lender pays the servicer a fee for performing this work. Nothing changes for the mortgagor except the address to which payments are sent.
MSR and Rocket Companies (all information taken straight from their Form S-1 filing with the SEC): The value of our MSRs is based on the cash flows projected to result from the servicing of the related mortgage loans and continually fluctuates due to a number of factors. These factors include changes in interest rates; historically, the value of MSRs has increased when interest rates rise as higher interest rates lead to decreased prepayment rates, and has decreased when interest rates decline as lower interest rates lead to increased prepayment rates and refinancings. *Other market conditions also affect the number of loans that are refinanced and thus no longer result in cash flows, and the number of loans that become delinquent. We use internal financial models that utilize market participant data to value our MSRs for purposes of financial reporting and for purposes of determining the price that we pay to acquire loans for which we will retain MSRs. These models are complex and use asset-specific collateral data and market inputs for interest and discount rates. In addition, the modeling requirements of MSRs are complex because of the high number of variables that drive cash flows associated with MSRs, and because of the complexity involved with anticipating such variables over the life of the MSR. Even if the general accuracy of our valuation models is validated, valuations are highly dependent upon the reasonableness of our assumptions and the results of the models. If loan delinquencies or prepayment speeds are higher than anticipated or other factors perform worse than modeled, the recorded value of certain of our MSRs may decrease, which c
... keep reading on reddit ➡NYSE:CEO / 87
NYSE:CEO DATE : Fri Oct 29 03:16:35 2021 SUBREDDIT : Daytrading
[$SGSI not the company you think it is!!! Lots of confusion on this symbol! $SGSI not the company you think it is!!! Lots of confusion on this symbol! Currently $SGSI is listed as Spectrum Global Solutions. What most don’t realize is a reverse merger was completed on June 16th 2021 with HighWire Networks! HighWire Networks inc was a private company for 20 years. They decided to go public and expand their footprint through the market. Their goal is to go from OTCQB to Nasdaq! In order to accomplish this goal they had to make changes! The first thing they did was change of staffing! Mark Porter replace the spectrum CEO. Mark is the CEO of HighWire. Then Mark reorganized the entire team! Spectrum leadership was released and a new team was built. Currently 26 upper management positions. Then Mark reorganized Spectrum businesses and restructured them. Mark built a solid foundation to expand faster! He believes in having a solid foundation in order to quickly grow. The next obstacle is the name change. Currently filings have been submitted and the wait period is almost over. Shareholders were sent notification of name change on the 28th of September. 20 days from that date, our new name will be HighWire Networks inc. Our new symbol will be HWNI. We currently have 8 different avenues for revenue, if you go to their website, you can see the multiple avenues. One that has me really excited is Overwatch cyber security! They currently have some big name partners in the field. For example BKD. More partners can be found on site. They currently added ransomware protection for even better coverage to cus
... keep reading on reddit ➡RKTs beginning to show signs of life again.
First, What the ER has shown, Then my Hopium for the week ahead.
With the latest ER showing healthy, strong growth, especially in the new markets they have entered. Its revealing that RKT will continue to grow and be profitable with any new market they enter.
One of the many FUD campaigns against RKT was that they wouldn't be able to maintain profitability, growth, and Market share attacking, because of the low margin price wars with UWMC. That seems to have proven an annoyance but that RKT would continue to build and make shitpots of money nonetheless. RKT is continuing to show the negative Nancys of the world that it can and will run cheap to gobble up market share if they need to. Run Cheap, Steal Customers, Step 3 Profit. I've said before that when RKT receives the valuation it deserves and when the FUD is proved wrong it will be too late to join the fun. I believe this Earnings showed the BS these hedgies and banks have been spouting is wrong.
1 Billion in profit this quarter, 83.8 Billion in Closed Loan Origination Volume. That is up more than 11 Billion from Q2 2020. With 162% growth in 2 yrs. Q2 2019 - Q2 2021
https://preview.redd.it/trj5r7mh4nh71.jpg?width=900&format=pjpg&auto=webp&s=f3208d70182f6658ec73f23b29c2dd3bbf0d1dd0
RKT Homes is GROWING. Its becoming a power house in RKTs Arsenal with 2 Billion in revenue, and 1.8 million unique monthly viewers. around 70% of transactions on this site involve a Rocket Homes agent or Rocket mortgages. One business feeding the other.
https://preview.redd.it/7g38hgax4nh71.jpg?width=900&format=pjpg&auto=webp&s=e1e250e50082faed84bb4e4e6cdf7f9fe71d68cd
RKT AUTO made roughly 480 million and its not even fully released yet. I cant wait to see the kind of numbers this beast puts up in a couple quarters.
Alrighty now that all the Q2 numbers, Revenues, and boring craps out the way, on to the HOPIUM, Options Data, and important events.
I believe RKT will continue its upward momentum into the 20s this week at a minimum. Solid ER, Multiple raises in PT from different ANALysts, FUD arguments are showing less influential.
Here is the current Option Data for 8/20 according to MarketChameleon
https://preview.redd.it/0w8htkca7nh71.jpg?width=1568&format=pjpg&auto=webp&s=00b64ba9b4676e0cf22d8b217db4154740979282
Decent volume between the 18.50-19.50 range(ITM or Slightly OTM) at 22,737 with large volume on the 20-21c with 27,543.
... keep reading on reddit ➡So $RKT CEO Jay Farner fuckin hates shorts almost as much as we do, and im going to outline what this absolute CHAD has planned for them.
His company RKT mortgage literally smashes every ER by a country mile and hes tired of his stock being held down by these spineless cowards. Farner is actively going to war with them Elon style.
Let me outline how this mega-autist CEO is going to force the shorts to squeeze themselves by 3/9.
Farner, along with company founder Dan Gilbert, and the leadership team own 95% of Rocket Companies.
- Theres currently 113m shares outstanding
- 38% of those shares are short
- CEO/Founder own 95% of the 2B float ( note this for later )
So a quick math lesson tells us:
38% of 115m = ~ 43 mm shares short
NOW THE FUN PART
In their most recent investor meeting team $RKT rolled up to the shorts door like the dancing pallbearers and introduced a $1.11/share SPECIAL DIVIDEND to be paid to anyone holding RKT stock by 3/9.
So.. what does this mean for shorts? Weve arrived at the BDE moment..
SHORTS HAVE TO PAY THE DIVIDEND
Shorts have to pay $1.11 for every share they are short on 3/9
BUYBACK PROGRAM
What else was in that juicy investor conference? Wait for it…
$1 BILLION DOLLAR BUYBACK PROGRAM
See, RKT makes so much fucking money they can afford not only a special divi, but a $1B share buyback. Im telling you this man is going into the trenches and clearing the shorts out by his fucking self.
TLDR:
$RKT has been suppressed for way too fuckin long, the company owns 95% of the shares and Jay Farner/Dan Gilbert hate shorts and they have diamond fuckin nuts, they aint sellin. Shorts have to cover their 43mm shares or they are forced to pay $1.11/share they are short on 3/9.
Also, if you can’t do math. If u buy shares and hold thru 3/9.. it’s an instant 5% return via the special dividend.
Edit: I just like the rocket.
TLDR: I have found no other company in the world where the risk vs. reward is better to invest in, and I've been investing for almost 14 years now.
First, I want to show my position as of today. 71,000 shares in RKT. While everyone has been selling for the past month, I've been buying. My average price is somewhere around $21. The price shown in the picture below is where the price ended.
https://preview.redd.it/gfq404cnik471.png?width=2342&format=png&auto=webp&s=4d84568cbf375e7d163e44346bb34eeb4bd874cb
Now, I don't yolo like other crazy people trying to get rich quick. I'm an investor, and I typically have 3-5 stocks at a time. Currently my second largest position is a combination of BRK.b and BRK.a. I also have other positions like XOM and KO currently for inflation reasons. Just so you believe me when I say I know what I'm doing, below are my returns for the past 3 and 5 years, and you can see I'm fairly consistent. In fact for the past 10 years you would see the same average returns, but Schwab doesn't show a 10 year performance number, so 3 and 5 is all I can show you.
https://preview.redd.it/gqdsqegf4m471.png?width=1424&format=png&auto=webp&s=dc27429bed44f37e2156c2551e791e8d04041757
COMPANY BACKGROUND:
RKT is probably the most grossly under valued mid cap stock I have seen in years. The last time I felt so strongly about a stock was 2010 when TSLA became public. I told my wife that Tesla would be worth 10 times the IPO value in 10 years if they didn't go bankrupt, and I figured there was about a 10% chance they'd go bankrupt in the first couple years. I bought Tesla around $19, and sold a year and a half later for about $24 to pay off my house. There wasn't a lot of movement, but it was a gain, and I wanted to do the responsible thing creating a life where I was debt free. I planned to replenish the position over the next 6 months. Unfortunately my timing couldn't be worse. A month after I sold, the stock skyrocketed to $85. Later, it then rose to $135 a month or two later. It was no longer the deal it has once been, and I never felt that it was worth chasing. Biggest mistake of my investing career. I point this out because you just never know when things will explode, but if you know the company well enough you can determine that it's an inevitability.
Rocket Companies (RKT) used to be known as Quicken Loans, which was established in 1985. When the company decided to go digital, they
... keep reading on reddit ➡I'm sure some of you guys have read the fantastic DD by /u/The_Big_Short_2020
If you haven't already, you should read it.
Linked here: https://www.reddit.com/r/wallstreetbets/comments/lr35wt/rkt_dd_part_iii_but_rkt_is_just_a_mortgage_company/
Now we're here. Rocket Companies absolutely crushed Q4 earnings and has absolutely mega bull guidance. Remember, the PE for Rocket is ridiculously low considering the current market (ITS UNDER 5, whereas other mortgage companies are trading around 15). Zillow, which is pretty much a glorified home selling marketplace, isn't even profitable has a near identical valuation, and before RKT got the earnings boost, valued at MORE than 🚀🚀🚀, which is just laughable, considering RKT is a lot more than just a mortgage company (which is detailed in the linked DD).
Here's another little DD summary I found:
https://docs.google.com/document/d/1XAbx_2fOHNMy2MvLW3CFEhJDRUJGr69coTVSV3A6ip4/edit
If you were too lazy to read either of those, know that RKT has 40% short interest. 40 PERCENT. THE SHORT BORROWING FEE IS 80%
This is where we talk about the upwards pressure on RKT stock that is coming this next week. With the Q4 earnings release, RKT issued a special dividend of $1.1 per share. This means that shorts have to either cover or pay the dividend by Friday, as the dividend is paid out to the owners of the shares at market close 3/9. Since the market operates at T + 2 day settlement, shorts have to cover by this FRIDAY or pay $40 mil+ to cover the dividend.
YES. YOU READ THAT RIGHT. 🚨🚨 5 DAYS UNTIL THEY HAVE TO COVER OR COUGH UP THE DIVIDEND
🚨🚨 THIS IS NOT A DRILL. WE HAVE AN ACTUAL SHORT EXPIRATION DATE 🚨🚨
To add to the heat, RKT announced 1B in buyback of their only 2B float in december. It appears they have not done it yet, as they have been waiting to release news that they announced last night in their ER. Thus, it is possible they will begin the buyback this week, which kills two birds with one stone, as a buyback will reduce the special dividend they have to pay out and put a ton of upwards pressure on the stock.
This special dividend is not just because the company is doing amazi
... keep reading on reddit ➡Do your worst!
Transcribed from the YEET newsletter.
🚀 Pt. 2: Rocketman
Why The Eagle’s Nest says RKT is about to launch
Contributor: @tradernest
Ayo, its Eagle come at you live from the eagle’s nest. We’ve got some ready-to-fly eggs hatching this week, and once we break our shell we are off. Flying through the clear blue skies, there is only one thing this Eagle can see soaring above him; that, my friends, is RKT.
Aside from having a meme literally in the name, there are three reasons I think RKT will rocket:
-
They’re expanding into multiple compatible profit pipelines
-
They’re flush with cash and have great fundamentals
3)Their CEO Jay Farner absolutely hates shorts, and is hellbent on their destruction
https://i.imgur.com/ujZwlE5.jpg
RKT is expanding into a few different areas that makes them an untapped gem for future growth in several ways. Think they’re just about mortgages? Think again; they have the recent additions of both auto and solar to their business repertoire.
Shares of Rocket Companies jumped as much as 8% on Monday after the mortgage lender announced an unusual expansion into the solar industry.
The company, which is the largest mortgage lender in the U.S. through its Rocket Mortgage division, will utilize a tech-driven approach that it says will simply the process of installing a rooftop solar system.
The announcement comes amid a boom in residential solar. The last few years has seen a record number of customers turning to solar, but across the U.S. less than 5% of eligible homes currently have rooftop panels. A recent study from the Solar Energy Industries Association and energy consultancy Wood Mackenzie forecast the solar market quadrupling by 2030.
A few things in that quote should get you nice and excited about RKT’s plans for the future. First of all, they’re applying tech driven approaches to a fairly rigid industry, and we all know Wall Street loves DiSrUpToRs. Secondly, solar is a booming industry that is ripe for profits, and a well-run company like RKT should have no problem elbowing their way into market share. Just think, they can refinance your house and sell you those ugly-ass, sun-slurping panels for your roof at the same time—what’s not to love.
As if that wasn’t enough, they’re also expanding into the red-hot automotive market. What’s got us so excited about this? Try the natural “synergy” (I hate that word, too), between auto sales and RKT’s current offerings:
Rocket Auto, the digital automotive retail m
... keep reading on reddit ➡Hoping this time I won't get immedately deleted. 3rd times the charm?
SUPER TLDR: 🚨🚨My PT is $73.5. 🚨🚨
IF you read my first DD and got in, congrats.
Check it out if you're late to the party.
There are exactly two reasons for why its NOT FUCKING OVER.
Reason 1: Dan and Jay hate the shorts
Wall street has never considered RKT to be a Fintech company.
You know what's happening tomorrow at 10:15 AM?
That's right. Jay Farner, the CEO is going live with Morgan Stanley during a TECH conference to have a fireside chat.
You're going to tell me that they just happened to have this scheduled smack in the middle of the week of hell for RKT shorts? You're going to tell me that there's no way they might drop a bomb that truly sends RKT to the stratosphere?
I have no fucking idea. But I trust in Dan Gilbert & Co. to win. Because that's all they've done for the past 35 fucking years. WIN.
To make things even sweeter, more dry powder is coming in tomorrow- market makers making new options tomorrow. Remember the first time new options came out for GME? If you bought even the farthest OTM one, it printed.
🚨🚨MM WILL HAVE TO REMAIN DELTA NETURAL WITH THEIR NEW OPTIONS 🚨🚨, THUS THEY WILL HAVE TO BUY SHARES. THEREFORE, THE MORE NEW OPTIONS BOUGHT TOMORROW, THE MORE FUEL IS LOADED FOR A GAMMA SQUEEZE. 🚨🚨
To close things up, recall that RKT had 40% interest going into this week. Look at today's graph.
Notice those two drops where it halted? See the STRONG support that immediately followed? This is a textbook example of a ladder attack. The SHORTS HAVE RELOADED, AT A NEW PRICE. Shorts ATTEMPTED to shake the 💎👐 , but failed. Retail is NOT ALONE on this 🚀. The DIP is being purchased, even while at an ATH. Someone is on the LONG side buying up shares with retail.
In my opinio
... keep reading on reddit ➡Every CrapCo tries to pitch themselves as tech these days, but I would like to explain why RKT is the real deal.
TLDR: RKT is having its "Amazon is just a book company" moment. Investors are over-discounting the MASSIVE upside from tech-ecosystem opportunities for this already highly profitable and fast-growing company.
First things, here is my position (~$350k market value): 17,500 shares @ $18.54, 50x Sep 2021 $19.89c, 20x Jan 2022 $20.89c. Now that you know I'm serious, let me start with some context.
What do the best tech investors look for?
I'll quote someone smarter than me: "Top tier firms like Vista Equity, Thoma, and Silver Lake focus on buying businesses with the following characteristics - mission critical products with high switching costs, growing end market, high ROI economics, market leadership, and sticky and recurring revenue base... Every software company can be run at 30-35% EBITDA margin" (Twitter: sendoh34)
I work at Best Buy so I know he is right. Whether the focus is early stage VC, tech PE or public equity, tech investors want nothing more than high-growth, scalable, recurring revenue and they look for companies with competitive advantages and moats within their industries to deliver and protect this tasty RR*.*
What does this have to do with Rocket Companies?
In case you care at all about what they do, Rocket Companies (NYSE: RKT) is a holding company of consumer-oriented financial services, real estate and mortgage businesses. Most think first of Rocket Mortgage (formerly Quicken Loans) which is the #1 lender in the U.S. with ~10% share of the $3.5TN mortgage market. Rocket Mortgage is known for their best-in-class brand, customer service and innovative, tech-driven approach to the industry. About +/- 90% of RKT's $16BN of revenue in 2020 came from its core mortgage business.
Rocket is currently treated by investors and analysts as a TECH-ENABLED mortgage company but not a FINTECH company. Read any analyst research report and it is obvious. Why is this important? Because while tech-enabled businesses can deliver significantly better operating results, market share gains and staying power than competitors, their core business is unchanged and so the valuation metrics by analysts and the institutions are unchanged. This is evident by RKT's current valuation: **at yesterday's close of $19.22, RKT was tr
... keep reading on reddit ➡It really does, I swear!
For context I'm a Refuse Driver (Garbage man) & today I was on food waste. After I'd tipped I was checking the wagon for any defects when I spotted a lone pea balanced on the lifts.
I said "hey look, an escaPEA"
No one near me but it didn't half make me laugh for a good hour or so!
Edit: I can't believe how much this has blown up. Thank you everyone I've had a blast reading through the replies 😂
They’re on standbi
TLDR: I have found no other company in the world where the risk vs. reward is better to invest in, and I've been investing for almost 14 years now.
First, I want to show my position as of today. 71,000 shares in RKT. While everyone has been selling for the past month, I've been buying. My average price is somewhere around $21. The price shown in the picture below is where the price ended.
https://preview.redd.it/8ubsau0upj471.png?width=2342&format=png&auto=webp&s=4779c0e223c8ada48b97effe23aa98f813fbe6a9
Now, I don't yolo like other crazy people trying to get rich quick. I'm an investor, and I typically have 3-5 stocks at a time. Currently my second largest position is a combination of BRK.b and BRK.a. I also have other positions like XOM and KO currently for inflation reasons. Just so you believe me when I say I now what I'm doing, below are my returns for the past 3 and 5 years, and you can see I'm fairly consistent. In fact for the past 10 years you would see the same average returns, but Schwab doesn't show a 10 year performance number, so 3 and 5 is all I can show you.
https://preview.redd.it/zeir4yeeqj471.png?width=1704&format=png&auto=webp&s=103ebe5fd1c682b58743058f88cab34b881b2e12
COMPANY BACKGROUND:
RKT is probably the most grossly under valued mid cap stock I have seen in years. The last time I felt so strongly about a stock was 2010 when TSLA became public. I told my wife that Tesla would be worth 10 times the IPO value in 10 years if they didn't go bankrupt, and I figured there was about a 10% chance they'd go bankrupt in the first couple years. I bought Tesla around $19, and sold a year and a half later for about $24 to pay off my house. There wasn't a lot of movement, but it was a gain, and I wanted to do the responsible thing creating a life where I was debt free. I planned to replenish the position over the next 6 months. Unfortunately my timing couldn't be worse. A month after I sold, the stock skyrocketed to $85. Later, it then rose to $135 a month or two later. It was no longer the deal it has once been, and I never felt that it was worth chasing. Biggest mistake of my investing career. I point this out because you just never know when things will explode, but if you know the company well enough you can determine that it's an inevitability.
Rocket Companies (RKT) used to be known as Quicken Loans, which was established in 1985. When the company decided to go digital,
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