Harry has posted a Charts of the Day video on NSM at TheTechTrader site noting: Nationstar Mortgage Holdings Inc. (NSM) was put out as a short on Monday. It formed a left shoulder-head-right shoulder, rolled over breakaway gap to the downside near support, it bounced and formed a bear flag. Look for something down around 32 short-term.
If it hits $32 I'll be buying all the way. That will have it trading @ less than 7 times 2014 EPS. These stocks(WAC is still my fav) are cash cows, taking from the banking business one of their best earning businesses due to regulatory restrictions thus setting up the likes of WAC and NSM to make significant EPS going forward. In 2014 these stocks will stabilize and the market will realize that mortgage servicing is enough to bring earnings levels which deserve at least a 10 multiple and these stocks will trade in the 50's and 60's again. This is the time to be buying these stocks up. I hope it makes it down to $32--I WIIL BE LOADING UP below $35. WAC is still the best for me.