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Altisource Portfolio Solutions S.A. Message Board

  • rosysmile50 rosysmile50 Jul 30, 2012 9:27 AM Flag

    Altisource and Ocwen recommended in Barrons

    I can't put a link as article is payable,
    but below is the part of the interview related to Altisource its an interview of Barrons with Douglas Kass, founder of Seabreeze Partners

    Barron´s: What else?

    Kass: In my last interview with Barron´s in 2009 I said my stock of the decade was Altisource Portfolio Solutions [ASPS]. It was trading at $15 and was spun off from Ocwen Financial [OCN], which I also own. The real positive influence of the U.S. economy to me is the housing market, which is embarking on a durable multiyear recovery that will continue through the balance of the decade.

    The two beneficiaries are Altisource and Ocwen. Altisource now trades at $76. I still like it as much. It provides services in terms of asset recovery of defaulted mortgages. It is one of the few companies I know that is experiencing 45% to 50% revenue growth and doubling earnings in a tepid environment.

    Ocwen is the largest subprime-mortgage servicer in the U.S. Banks are disaggregating themselves from the mortgage-servicing business, which tends to be capital-intensive and is now considered a noncore business.

    In the past year, Ocwen purchased nonprime mortgage-servicing portfolios from Goldman Sachs, Morgan Stanley, and Barclays. Its platform now has close to $150 billion of servicing assets in its portfolio. When the loans default, the business goes to Altisource. Altisource will probably earn in excess of $5 a share this year. Ocwen will earn close to $2.50. I think Altisource will trade in excess of par, and in the fullness of time -- i.e., in the next year or two -- Ocwen can go up as much as 50%.

31.31Sep 23 4:00 PMEDT