NSM

Nationstar Mortgage Holdings Inc.

TMT, Finance/Real Estate, Event Driven/Special Sit


Presented:01/08/2014
Price:$34.32
Cap:$3.10B
Current Price:$18.27
Cap:$1.79B

Presented

Date01/08/2014
Price$34.32
Market Cap$3.10B
Ent Value$0.00B
P/E Ratio10.85x
Book Value$13.70
Div Yield1.6%
Shares O/S90.35M
Ave Daily Vol1,250,000
Short Int9.24%

Current

Price$18.27
Market Cap$1.79B
Nationstar Mortgage Holdings Inc. operates as a residential mortgage loan servicer in the United States. It operates in two segments, Servicing and Originations. The company services loans as the owner of the mortgage servicing rights (MSRs) and also services loans on behalf of other MSRs or mortgage owners. Its loan servicing primarily involves the calculation, collection, and remittance of principal and interest payments; administration of mortgage escrow accounts; collection of insurance claims; administration of foreclosure procedures; management of real estate owned (REO); and disbursement of required protective advances. It also offers various ancillary services, such as providing services for delinquent loans; managing loans in the foreclosure/real estate owned process; and providing title insurance agency, loan settlement, and valuation services on newly originated and re-originated loans. In addition, the company engages in the origination, packaging, and sale of single-family conforming mortgage loans to government-sponsored entities or other third-party investors in the secondary market. Nationstar Mortgage Holdings was founded in 1994 and is headquartered in Lewisville, Texas.

Please note: The following is an update from a client who previously recommended NSM on December 16, 2013.

Highlights

The presenter sees shares of NSM as an asymmetric long at current levels, with just a couple of dollars of downside from here. That figure represents the liquidation value of the MSRs the company currently has, plus its Solutionstar business. Potential upside, on the other hand, could reach into the low $60s range, conservatively.

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Idea Discussion

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