Can't believe this is still below the top analysts radar
LPS is the hub (right in the middle) of all this good 'housing' news we've received lately, and yet isn't even being mentioned by the top analysts (??). Builders have been on a tear lately, people are buying up the homes (report today said home inventories are at their lowest level in years right now, banks will lend (so long as you qualify and that's understandable) and jobs are slowly but surely coming back, and interest rates are at all time (our lifetime) lows. All and this adds up to loans coming to LPS for servicing (and LPS handles approximately 60% of all mortgages in the U.S.). Watch for (Feb 7th) a blow-out Q4 report and an extremely upbeat guidance for 2013. This should catch the big-boys attention!
Default revenues remain depressed due to foreclosures delays. This is what is keeping the stock back. Legal clarity on the remaining issues are also at play. Both are likely to have positive endings. Seriously delinquent loans are now at 3.6 mil and will ultimately become foreclosures while we are in the final stages of legal settlements. Originations are holding up better for longer and market share is higher for LPS. Mortgage processing remains steady and continues to grow. 15% FCF yield is very juicy.