...Leon Cooperman anruft, deswegen möchte ich hier noch mal den Teil einstellen und die "Schmankerl" farblich hervorheben. Das rot eingefärbte muss man sich mal auf der Zunge zergehen lassen
Lee Cooperman -- Omega Family Office -- Analyst Thank you very much. Let me first just congratulate you guys. I mean, you've had a rising tide, but you've capitalized on it in an extremely effective way. And I think you should be congratulated on your performance. But I have four or five questions that are all kind of interrelated so maybe I can get them out and then you can handle them in the order that you want. Number one, what does the minimum cash needed to operate the business? You had $695 million of unrestricted cash. What do you need in the way of minimum to operate the business? Secondly, there's a very large range between the 12% and the 20% in terms of return on equity. What are you assuming in that number in terms of capital management? And what are the four or five things that would determine whether it's 20% or 12%? What do we watch? You mentioned that -- and I know this to be the case that the stock restrictions -- repurchase restrictions come off in August. What does that enable you to do basically? And also fourthly, let me just give you a little speech in this question. Do you have a value -- view of the value of your business? And what I mean by that, Warren Buffett has said that it doesn't like -- since buying back stock in a sense you're trading against your shareholders, he wants to show us to know that exactly what's going through his minds. He tells you what price-to-book and what kind of cash level and etc., he would require before buying back stock. But it just seems to me your stock is very mispriced. I think you also seem to agree with that. But do you have a view of the value of your business? And lastly, what is the likelihood of a transaction Xome? Chris Marshall -- Vice Chairman and Chief Financial Officer [...Unwichtiges weggelassen...]
We're permitted to have a very small change in ownership, 5% owners, and part of that is driven by how much stock we buy back. This year, prior to August, there's a safe harbor that we've operated under in buying back stock that to be no more than 10% of our outstanding shares. In August, that would shift to 50%. Lee Cooperman -- Omega Family Office -- Analyst 5-0, 50? Chris Marshall -- Vice Chairman and Chief Financial Officer 5-0. Lee Cooperman -- Omega Family Office -- Analyst Great. Chris Marshall -- Vice Chairman and Chief Financial Officer Yes. The likelihood of Xome, I got to tell you, there's a lot of interest in our businesses, but I'm not good at just turning that into probabilities. I'm good at counting money, but not guessing what people will do. We're having lots of positive discussion, and we've got great businesses. Can we really find an opportunity to monetize them at the right price? We'd rather surprise you and tell you we've got a deal than lead you to have some expectation that doesn't come true in the next quarter or two. And so -- but we're actively working on that. And in terms of the business, what is it worth? It's a hard question to answer, but I certainly think that the shares that I own are going to be worth a lot more in the future. I think we have an opportunity to -- the 25% ROTCE we've given that out, one thing you've -- I'm sure you've noticed is we're conservative in the guidance we give. We feel very, very comfortable that we'll deliver that this year, if not more. So you add that potential for monetization of some or all of the -- Xome, you think about the changes in tax rates that are almost certain to occur and you could see our tangible book value be up by 50%. The question is how much premium are we going to get in the marketplace. When you look at the multiples that some of our competitors are trading at, and we look like a dirt cheap stock. Lee Cooperman -- Omega Family Office -- Analyst That's my impression as well. And you have a $2.7 billion market cap. When you look at the deferred tax asset, value of Xome, and the earning power that you're generating from -- it would also seem to be very mispriced. But congratulations, you guys have done a great job. |