Quote:
Originally Posted by Rain Man
I've got a miniscule amount of UWMC, and it's been a dog. I read a little clickbait article just yesterday that said it's incredibly undervalued if one looks at projected P/E over the next 12 or 24 months. (I don't remember the time frame.) They were saying something obscene like the forward P/E was under 3, which implies in my mind that the stock is undervalued by a factor of 4 to 10. So I was pondering maybe breaking my rule about turning small dogs into bigger dogs. Good thing I waited. I'm still intrigued by the article, though, and the dividend salves some of my pain so far.
From what I could figure out, though, the big hit today was because they're issuing more stock and diluting share value. It's not like they had bad revenues or earnings, but diluting share value is annoying.
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I also believe it's undervalued and my plan was to make this a strong play for the next 1-2 years. I am also breaking my averaging down rule and buying more shares tomorrow in my passive account. There was tons of short interest today on this stock, over 70% of the volume today! They also have initiated a share buyback plan of $300M to begin initiation soon.