1. Investment community sentiment shifting back to positive. Think about all the public companies who's fortunes have faded and then turned up. The share price has invariably risen.....
2. PE delta likely to trend toward a market multiple from current PE of 3.5. (Think about it....don't you think you could rationalize $60, $90, or even higher valuation for business based on cash flow?)
3. CEO and CFO both narrowing (during Q1 CC) their 2015 EPS target to $6 (adjusted) per share (based on $136mm adjusted pretax income).
4. Ocwen resuming a growth trajectory in future, with regulator problems behind it.
5. Hubzu - showing continued rapid growth of new customers (non-ocwen listings grew from 105 to 460 to 881 over last 3 quarters). Also earning 4.5% buyers commissions on auctioned properties.....wow.
6. Lenders One and Mortgage Builder - growing 15% q to q. and continuing to add new members.
7. Residential Asset Business - will continue to grow as RESI rapidly adds rental units to it's portfolio (per it's charter). Also the launch of new business to service non-RESI apartments.
8. Near term share reduction and or debt re-purchase....Likely to happen soon as ASPS receives $30mm this week from sale of HLSS shares.
9. Short covering.....
10. Take over candidate based on current low valuation......
Right...company borrowed at same rate as earlier debt...somewhere around 2 or 3%. It was stated in Q1 CC that they are looking at either buying back more shares or retiring debt. At this point I feel debt reduction is more positive than share buyback, as debt is senior to equity.
This could be a easy run up most of the year. All fund managers are looking for big returns. This could really get moving with momentum also.
Market multiple is 20, and most banks ate trading in this range right now....
They will be receiving around 30 million in a few days from sale of HLSS shares.....They may buy shares and or debt, as was stated on CC
....and the smart ones are buying long.
It is going to be a sweet ride up this year!
That would be nice....and honestly a reasonable valuation. See you at $120!
...but there were several Tier One analysts on the call who were not on the Q4 CC. I would expect to see some near term upgrades, as the overall tone was quite positive.
I think 20 million shares is a good number, which provides liquidity. At this point buying back debt at below par might be a better investment. It would de-leverage the balance sheet and increase our ownership also.
Altisource Beats Q1 Revenue, EPS Estimates
MIDNIGHT TRADER 7:55 AM ET 4/23/2015
08:55 AM EDT, 04/23/2015 (MT Newswires) -- Altisource (ASPS) was steady in pre-market trade after beating estimates on the top and bottom line in Q1.
Shares closed at $18.07. The stock has a 52-week range of $12.28 - $122.25.The financial services company reported Q1 revenue of $240.5 million, versus $482.2 million in the same period last year and ahead of the $224.5 million Capital IQ consensus. Net income was $3.7 million, compared to $39.6 million in the year-ago quarter. Diluted EPS were $0.18, versus $1.61 last year. Adjusting for certain items, Q1 EPS were $0.56. This beat the $0.44 Capital IQ estimate.