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.
Thanks vbt, I was actually thinking of not just adding at some point, but whether or not I should sell my existing $28.7 lot. I've learnt never to try to catch the bottom, but appreciate estimates of support. Looks like around the $21.90 mark according to my chart.
As an aside I can't mention enough how good it is to read something intelligent on these boards. Thanks!