I also reviewed the consent letter back to Dec 23, 2014.
"Also on the call, CEO Ronald Faris said Ocwen would exit from the business of servicing government-backed mortgages, and focus on just non-agencies. The shift (and sale of the agency portfolio) should free up about $1.7B in capital which could be reinvested or returned to shareholders."
If ASPS can take over this business, ASPS will be good.
Return On Assets or ROA is an indicator of how profitable a company is relative to its total assets. ROA gives an idea as to how efficient management is at using its assets to generate earnings. Calculated by dividing a company’s annual earnings by its total assets, ROA is displayed as a percentage. Sometimes this is referred to as “return on investment”.
It tells you what earnings were generated from invested capital (assets). ROA for public companies can vary substantially and will be highly dependent on the industry. This is why when using ROA as a comparative measure, it is best to compare it against a company’s previous ROA numbers or the ROA of a similar company.
The assets of the company are comprised of both debt and equity. Both of these types of financing are used to fund the operations of the company. The ROA figure gives investors an idea of how effectively the company is converting the money it has to invest into net income. The higher the ROA number, the better, because the company is earning more money on less investment.
Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) was able to keep return on assets at 23.80% in the trailing twelve month while Reuters data showed that industry’s average stands at 8.49% and sector’s optimum level is 3.25%.
Altisource Portfolio Solutions (NASDAQ:ASPS) has earned an average broker rating score of 2.00 (Strong Buy) from the two brokers that cover the company, Zacks Investment Research reports. One equities research analyst has rated the stock with a hold rating and one has given a strong buy rating to the company.
Analysts have set a 1-year consensus target price of $53.75 for the company and are expecting that the company will post $1.66 earnings per share for the current quarter, according to Zacks. Zacks has also assigned Altisource Portfolio Solutions an industry rank of 91 out of 265 based on the ratings given to its competitors.
Shares of Altisource Portfolio Solutions (NASDAQ:ASPS) traded up 3.20% during mid-day trading on Friday, hitting $31.31. 50,369 shares of the company’s stock traded hands. Altisource Portfolio Solutions has a one year low of $28.20 and a one year high of $164.92. The stock has a 50-day moving average of $44.68 and a 200-day moving average of $83.1. The company has a market cap of $634.7 million and a P/E ratio of 4.31.
Don't get it why price is down $2.5 today!!
Sentiment: Strong Buy
Check with other companies, From time to time, they all have to deal with all kinds of lawsuits.
But the total shares they sold is not too much. It's pretty much like a year end sale for meeting some income tax goal. We cannot control the Insider sales anyway, but todays down 14% looks like overdone
The Monitor from DFS will have limited power, and he/she cannot do too much if ASPS ready to "match the price".
a. AS long as ASPS match the market prices provided by other companies, The Monitor have no right to force OCN chose other companies.ASPS can and will offer better price than other companies, since OCN is its brother company.
b. ASPS has some investment in OCN some subsidiaries($94m), they should have the right to get the order first.
c. "Prefer less than 200k shares holder to make a decision whether to do business with ASPS"
But they are still shareholders anyway. I don't think they are in that of leadership position to know the industry better and can make a better choice other than ASPS.
d. I reviewed 10-Q for ASPS, Two places ASPS mentioned that are charging OCN "market price". So between DFS's charging standard and the "market price" they will not expected to be not too much difference.
2. OCN damage is almost settle down
So far do not see another State file lawsuit, only some lawyers are filing a few cases. We won't expected too much damage on OCN.
3. ASPS developed many business other than with OCN. Last Q clearly showed the revenue increase to $288m than 2013's $213, Although business from OCN increases more than 20%, but the percentage of OCN business dropped from 68% to 60%. We can see ASPS aggressively develop new business other than with OCN's traditional business.
4. The damage can be estimated. Service charge can not be more than 5%-20% range. So assuming this loss from OCN, ASPS still can achieve its goal for the 4Q.
5. Among industries, ASPS have the lowest PE
So we shall see ASPS soar to $40 range very soon.
Sentiment: Strong Buy
1.Issue stock in 5th day and $15m covert to common share
2.Publish Opu Bio co-operation in 9th day
They know what is going on. They how to catch up the boat.
Sentiment: Strong Sell