I have been a trader on this stock for the last 90 days. I think what is going on here is naked short trading. The short interest has gone up a lot in the last 15 days. i have tried to borrow shares for the last 45 days but have been unable to. but the short interest keeps rising. I think once this gets more in the open a little more covering of the naked shorts at least will be done and should provide a floor for the shares. The earnings for the future look good. the outlook for the company looks good. Rebound coming just hold on for now. I see a move back to the 30,s soon. Ocwen missed earnings a few times and not much happened to there stock.
Thanks mate. Always nice to have a considered, intelligent opinion on these boards. I thought this board was dead for a moment. What do you think the impact of JPM's purchase of Metlife's portfolio will have on NSM?
I agree with the ceo on the conf. call that met lifes portfolio is not a very good fit for them he said he did not bid on it. I think it will not impact the company at all. they are more into the banking mortgage portfolio action i think.
This sector has been run up at lightening speed. Reason: sector build out. There was an understanding that the banks were going to offload trillions in servicing loan portfolios. Now that Jim and wells are here to stay, it's down to buying portfolios that are priced higher than thought with very little margin obtainable in the short term. The scraps are being fought over and for now OCN and WAC are winning. NSM was supposed to easily have secured the MetLife portfolio. And, had the strongest chance to get the rescap one. So, you're seeing a multiple reasoned sell off. Next strong support is $20. So, don't buy so quickly. Be patient. There is still an opportunity in the long run. Though watch the margin spreads.
It's options expiration week too, and you see the price driven down to wipe out all the call option holders... Look at the yahoo options page for NSM and you will see what i mean. If there's no shares to borrow for shorting then I suspect the institutional big boys are doing naked short selling or borrowing phantom shares to sell. Fiscal cliff is an excuse to shakeout weak players I.e. retail investors before the correction ends IMHO. This pattern has happened time and time again and I don't see any difference this time.