Rocket Companies: From 'Breaking Bad' to 'Breaking Records' - A Heisenberg Perspective

Stay Out of My Territory: A FinTech Empire Rising

So another player steps into the game huh? ValueAct Capital these corporate governance aficionados think they've found gold with Rocket Companies. Well let's see if they can cook up something better than blue meth. Apparently Rocket is making waves in the mortgage biz like I did in the drug trade. They claim to be the top dogs the Heisenberg of home loans all thanks to their 'technology first' approach. Sounds like someone's been watching too much science fiction. But hey if it works it works bitch!

The Float Fiasco: A Controlled Substance

Ah here’s where things get interesting. Dan Gilbert the puppet master behind Rocket controls over 80% of the voting power. Sounds like a dictatorship doesn't it? A small public float convoluted share classes – it's like trying to decipher a complex chemical formula. No wonder the stock hasn't taken off. It's like trying to sell meth in a retirement home. ValueAct thinks they can fix this mess? Good luck with that. They're going to need more than just capital; they need a miracle.

Float Like a Butterfly Sting Like a Bee: The AI Infusion

Now they're talking AI huh? Artificial Intelligence is going to supercharge Rocket’s assembly line. Sounds like Jesse’s trying to build a robot to cook for him. But hey if they can pull it off more power to them. ValueAct claims that companies like Rocket are well positioned to adopt AI. Just like I was well positioned to take over the Albuquerque drug trade! Remember that time I told Jesse we need to cook? Same concept.

Tech Native or Die Trying: The Heisenberg Imperative

ValueAct likes the company for all the reasons stated above. They take board seats in approximately half of its core positions but does not go into an investment "needing a board seat" or even necessarily wanting a board seat. I for one like that they have experience from both sides of AI. They have been in the boardroom at companies like Microsoft and Salesforce two of the largest developers of AI. They've also been active shareholders at companies like Spotify The New York Times Expedia and Recruit. So when ValueAct invests in AI it isn't just spitballing.

Market Share Domination: Say My Name!

Here's the real kicker: Rocket wants to grow its share of the mortgage market. They're aiming for 15% to 20% maybe even higher. Ambition is good but they better not get greedy. I am talking of organic domination with some accretive mergers and acquisitions. In the long run there is no reason why this industry should remain so fragmented. In the end you either die a small fish or live long enough to see yourself become a shark in the ocean. Just remember what I always say: tread lightly.

The Verdict: Cook or Be Cooked?

So what's the bottom line? Can Rocket Companies become a true titan in the mortgage industry or will they end up like Gale Boetticher – a footnote in someone else's story? With ValueAct's investment and a little AI magic they might just have a chance. But remember this is business not a high school chemistry class. There are no participation trophies. Either you're the one who knocks or you're the one who gets knocked out. Choose wisely.