IMO if you are looking for a 60X increase as the standard on which performance will be judged, you will be disappointed in ALL analysis. 60X is an outlier, With NSAM an expectation of a double in 3 to four years makes it an excellent value. Any more is gravy. but these home runs from one stock? Please be real!
Mr Santo's seeking alpo article is typical of the junk they allow to be 'published' under their banner. We have 6 1/2 hours of trading of the 'WI' stocks (mostly driven by arbs and indexes) and he has the ability to conclude the future for the company? I think not! Like most longs in the stock, I am very pleased with the stocks performance over the past several years! I am quite happy with the first day rollout of the 'spin' and expect longs will continue to enjoy additional growth with a little patience. I don't know anyone who was expecting a 'massive bargain' other than Mr Santos. I expect that we will see some volatility in the coming months and a series of deals that will grow the wealth of those who are longs. Looking back in a couple of years, we longs will be discussing how smart it was to stay long. As for Mr Santos, he and his 'short' friends will still be scratching their heads in disbelief. Maybe he could write a SA article discussing the 'massive losses' shorts have suffered over the past several years betting against this management team. Hint, it is several hundred million dollars! Continued good fortune to all longs!
Hi, guys --
I know I'm wasting my time, but I sometimes enjoy wasting my time.
Me: Cheerleaders can be funny, sometimes.
newguy7001: As for Mr Santos, he and his 'short' friends will still be scratching their heads in disbelief.
All he said was that NSAM is not a massive bargain. And he said that because, well, it isn't a massive bargain. I don't know ... good deal, sure, why not? Capable of producing outsized returns over time if things evolve favorably, sure, why not? But "massive bargain"? It's not a massive bargain. And actually, for current purposes, whether it's a massive bargain or not doesn't even matter, because how one gets from, "Dude said NSAM is not a massive bargain," to, "Dude's short NSAM," is a mystery that I don't care to understand.
We were waiting for this spin-off with bated breath, hoping for a bargain similar to Altisource Asset Management.
Kudos on correct use of "bated breath." Most people do it as "baited breath" as if they had eaten bait.
•Now that we have specifics, however, the massive bargain did not emerge.
Altisource is a sweetheart deal for insiders of RESI. It is, or was, a "massive bargain" for the public only as long as they didn't sniff it. Now that they have, and it is down 25% in a couple days.
•If anything, it looks like the spun-off entity is relatively more expensive versus NorthStar Realty, than Altisource Asset Management is versus Altisource Residential,
That's because NSAM is more of real company and not so much as a toy of the insiders as AAMC is.
Hi, guys --
Cheerleaders can be funny, sometimes. Santos argues that NSAM isn't "a massive bargain", and that is somehow construed as being, "negative". I'd love to hear the case that NSAM is a "massive bargain"; if persuasively made, I might buy more.
NRF was cheap at $8 or $9. Stupid cheap, because Hamamoto, et. al., were running around saying, "We're too cheap and here's what we're planning to do about it," and then went and did it, which is why the stock doubled in a year. I don't know what to say. The market has at this point been forced to acknowledge the undervaluation. How much juice can be left?
It only has to multiply by 2 in 12 months to make most of us ecstatic. How many other relatively safe bets you know of that could yield a 100% return in 12 months? BTW, I do not really expect it to double, I'm just hoping for a 10-20 % price rise and a decent dividend. GLL
These articles scare the weak and create super buying opportunities. In the last couple of months I was able to back up the truck on KMR,KMI, and LNCO thanks to Seeking Alpha's help. Do your due diligence and take advantage of shorts and the stupid pushing good stocks down.
Santos Paulos is, if you listen to him, God. He is NEVER wrong, only comments that disagree with him are wrong. To negative comments he will ALWAYS repeat his article statement(s) as "ex cathedra" statements. Maybe he should be elected the next Pope.
You will also notice, if you read his stuff, the constant use of the Royal "we." Maybe Pope/Emperor in his own mind would be more fitting.