The Case For Buying $UWMC

The Case For $UWMC

The case for buying United Wholesale Mortgage ($UWMC) is an interesting stock to look at because that hype started with Rocket Companies Inc ($RKT). Investors started buying $RKT due to the idea of another squeeze and now a lot of them are looking for $UWMC to also rocket. I enjoy reading r/wallstreetbets and how people take a lot of time when posting a Daily Discussion. In this blog post I am going to post a couple of DD’s that some Redditor’s did in order to inform others about the potential of $UWMC. If you find this post entertaining in any way, then make sure to send this to friend!

If you want to know, I did buy some shares before market close yesterday after reading some DD’s for United Wholesale Mortgage. I bought 5 shares at an average cost of $9.96. I was thinking about buying some option contracts but the prices were already high. To some 5 shares might not be enough to make some huge profit if the stock does decide to skyrocket, but I don’t have a lot of money to work with. Slowly getting there. Maybe if i’m able to make this blog successful then I will be able to make some big plays and let you follow the journey. Anyways, besides the point on that, lets read the first DD on $UWMC..


UWM recently went public with a valuation of 16B calculated at 9.5x using the companies estimated adjusted net income of the first nine months ended September 2020 which was 1.7B x 9.5 this is BEFORE their record breaking earnings in Q3 and Q4 numbers were considered.

In Q3 they closed 54.2B in closed loan volume with 3.18% margin which equals to 1.45B in net income. This is a money printing machine especially with low interest rates and a booming housing market. Pays a dividend at .40c/share, current yield is 3.6% at $10.88 you will be buying in at the floor after consolidating for weeks.

Q4 net was an over 800% increase from Q3

$UWMC has also been included in the preliminary list of IPO additions for the Russell 1000 and Russell 3000 indexes on March 22nd!

This is not financial advice, I just like the stock


Below is another one..

You’ve probably seen how $RKT shares exploded higher due to an epic squeeze. A lot of traders have been looking for a sympathy play, and $UWMC comes to mind (formerly known as GHIV), another mortgage broker.

However, after the deSPACing, the stock got rocked, but now it’s starting to run higher. Of course, this actually makes sense. There are multiple catalysts on the table. Not only is there an upcoming special dividend, similar to $RKT, but there are 102M shares floating. In other words, there’s not a whole lot of supply for everyday traders.

When it comes to $UWMC, it’s actually a profitable company and with about a $16B market cap at the time of this writing, it’s eligible for index additions. $UWMC is eligible to be included in the Russell indices, as more than 5% of the company’s total shares is in the free float. Moreover, $UWMC can also qualify to be included in the S&P 500.

This potential demand and relatively low supply can cause this stock to get to $20+. The company also explosive earnings, and the dividend is payable on April 6, 2021 to shareholders of record as of the close on March 10.

Disclaimer: I / We have a bullish position in $UWMC via options.

P.S. I just like UWMC. (Source)

The Case For Buying $UWMC

I will make sure to update to update on the potential gains or losses that I will face in the next week or two. I might even decide to buy more shares when the market opens after doing more research. Thanks for supporting The Finance Starter and hopefully you found this post informative. If so, don’t forget to share it!

below is a funny video I found on GME

Preview of another blog post below

15 Simple Tips On How To Save Money

In today’s post, I am going to talk about 15 simple tips on how to save money. These are some of those topics that are interesting to read about and try to incorporate into your own life. Saving money, in general, is one of those hard things to do (especially with Covid-19), and reading about how others are doing it will hopefully help you get off to a good start. If you find anything from this list helpful then consider sending it to a friend that would also benefit from this information.

List of Money Saving Tips

  1. Thinking about going shopping? Consider making a list before stepping foot into the store.
  2. Adding to #1, make sure that when you go shopping, that you aren’t walking in with an empty stomach! This will help you not grab a bunch of stuff out of hunger
  3. The best thing to do is shop for food online. I’ve found that I pay a lot more attention to deals and savings, not over ordering, and there are no impulse buys. (source)

Read the rest here

The Case For Buying $UWMC