The stock reviewed in this posting is not for those who can not sleep at night from an investment, but if I call this one right you have the opportunity to make some serious money. Serious money in something like a 5 bagger or more. Since starting this review the stock has moved up about $4 per share from a nice earnings report.
Altisource, symbol ASPS, is one the best positioned companies on the planet. They service delinquent home loans and help lenders keep loans active and home owners in their homes. Contrary to popular opinion banks and lenders DO NOT want to foreclose on homes. They certainly do not want to foreclose on homes right now that have asset values under the loan value. So enter companies like ASPS which try to bridge this gap. ASPS is a one stop operation doing loan servicing, title and closing , residential valuations, default processing, and the list goes on. Their profits doubled last year and we are only in the top half of the first inning of dealing with all these home loans that will need attention in the next several years, and frankly decades. The stock has gone from $13 per share to now around $37 per share in the last year. Do you not wish you had known this about one year ago when it was $13?
I have been looking for a way to get in on the home loan and processing action from the overbuild of the last decade and this stock looks to be the way. It has no dividend so the only way to make money here is either via capital gains or options.
One final note I got onto this stock via Doug Kass, who I followed into Goldman Sachs earlier so buyer beware. But with that said I believe if you are a risk taker ASPS offers an excellent opportunity to invest capital gains. Do your due diligence here, but consider an investment.
I do not own ASPS as long or as a option.
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