Agree. But why OCN did not react promptly? Management need to build up their credit. Eventually, the shareholders are paying for the price.
I actually shorted it $85, This is a common mistake that investors always follow the "rating companies(RC)". If "RC" said $95, then they buy till $90 or $93. I always ask, if it reach to $95, then what? The stock will stay there forever? Definitely No. So don't follow RC. Also, there is a "trend buying", It always think "WHAT ABOUT IF..." Now I am buying BITA now. Since I think growing slow does not means "Not Growth", and actually, on line buying car is increasing in China.
When they give out this estimate, do they consider the OCN potential change? and by how much? If they totally neglect the change, then...
That's true, Everybody knows about it. We are dealing with uncertainty everyday. OCN has a few way to "cut" the business it deals with ASPS
1.Require ASPS reduce service rate
ASPS claimed charge is at "market price" while NY DFS said higher. The difference is 5-10%? or what?
2.Develop by itself
Take times, Existing customer don't want to change, not time to test it.
3.Sell some business to ASPS
Very possible. OCN needs the money now. THIS IS THE BEST CHOICE FOR BOTH COMPANIES.
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