Altisource Portfolio Solutions S.A. (NASDAQ: ASPS)
Altisource Portfolio Solutions S.A. (ASPS), a mortgage, financial and technology company announced yesterday positive third quarter 2015 financial results. The company reported $1.82 earnings per share which was $0.40 better than analysts estimate of $1.42.
Altisource Portfolio Solutions S.A. CEO Comments
William B. Shepro, Chief Executive Officer, said
“We remain focused on providing high quality, compliant services to our customers and positioning the Company, through our strategic initiatives, for long term growth. We continue to execute with existing customers, on-board new customers and receive very good feedback on our offerings from the market. We believe we have the right strategic initiatives, with each addressing very large markets, in line with our core competencies and our competitive advantages.”
Shepro further commented,
“I am pleased with the financial results for the quarter. Compared to the third quarter of 2014, growth in our asset management business largely offset lost revenue from the November 2014 discontinuation of the lender placed insurance brokerage business, the full amortization of the Equator acquisition deferred revenue in November 2014 and fewer third quarter 2015 property valuation referrals. With a focus on growth through our four strategic initiatives, we have increased our investments in sales and marketing in 2015, primarily accounting for the lower net income.” Globe Newswire
ASPS Technical Analysis
ASPS gapped up in price yesterday to $35.70, up from the prior day’s close of $31.77, which is a 12% increase in price based on favorable news. Taking a look at the daily chart, we can see the last time the stock traded above this price level was on July 30th, when it closed at $38.90. Since that date, the stock had been on a downtrend until it hit lows of $22.10 on October 1st. The stock has rebounded off those lows and has been trending upwards during the month of October. The stock does have a low float of 8.29 million shares and is trading 1.5 times the normal daily trading volume. Both of these factors make the stock a candidate for the gap and go strategy. The stock did reach pre market highs of $39.36 but it gave back $3.66 at the open, or equivalent to 9%. For trading purposes, my entry point would have been $35.80 looking for a run up to $37. My stop loss would have been the gap up price of $35.70, fearing anything below that and the stock would start to fill in the gap up.
Altisource Portfolio Solutions S.A. operates as a marketplace and transaction solutions provider for the real estate, mortgage, and consumer debt industries in the United States. Its Mortgage Services segment offers services that span the mortgage and real estate lifecycle outsourced by loan servicers, loan originators, investors, and other sellers of single family homes. This segment provides asset management services; insurance services; residential property valuation; origination management services; and default management services. The companys Financial Services segment offers collection and customer relationship management services. This segment provides asset recovery management services, such as post-charge-off consumer debt collection; and customer care and early stage collections, insurance call center, and administrative support services. Its Technology Services segment offers REALSuite of software products consisting of REALServicing, an enterprise residential mortgage loan servicing product; REALResolution, a technology platform that provides servicers with an automated default management and home retention solution; REALTrans, an electronic business-to-business exchange; REALRemit, an electronic invoicing and payment system; REALDoc, an automated document management platform; REALAnalytics, a software platform that incorporates econometric models and behavioral economics to assist servicers in various aspects of servicing; and Equators Solutions platforms that are used separately or together as an end-to-end solution, as well as information technology infrastructure services. The company serves sub-prime servicers, utility companies, commercial banks, servicers, mortgage bankers, investors, financial service companies, and hedge funds, as well as a government-sponsored enterprise. Altisource Portfolio Solutions S.A. was incorporated in 1999 and is headquartered in Luxembourg. Yahoo Finance