ASPS Sell Presentation (Portwood 10.21.13)

Page 1

Green & Gold Fund Recommendation: Sell Altisource Portfolio Solutions (ASPS)


Current Sector Holdings • Sector: Financial • XLF, BAC, VRSK, AGO, RESI, AAMC, and ASPS • Overweight ~ 9% or $49,500


Company Profile (ASPS) Industry: Mortgage and Real Estate Company Description: • Provides real estate services, portfolio management, and asset recovery in the U.S. • Including loan services, foreclosures, bankruptcy, and debt collection • Technology services: ordering, payment, and infrastructure services


Historical Performance (ASPS)

Purchase Price $31.73

Prev Close:

$137.69

1yr Target Est:

$121.50

52wk Range

$67.97 $149.25

Avg Vol (3m)

119,505

Market Cap

3.12B

Beta

0.56

EPS

4.62

Dividend

N/A

Forward P/E:

16.49

Price/Book

17.65

Shares Outstanding

22.9M


Revenue Breakdown


Return on Assets

•ROA decreased 38% in Q2 of 2013 compared to same period in 2012 •Net Profit Margin compared to industry average: 16.62% vs. 23.50%, respectively


Rational for Sell (ASPS) • QE tapering may have a negative affect on industry • Highly dependent on mortgage services • Sector Diversification: 40% of sector invested in Mortgage & Real Estate • Capitalize gain ~ 344% return on investment


Sector Placement / Recommendation Current Status: • Target Allocation: 8.86% • Current Sector Allocation: 17.87%

Recommend: • Sell 200 shares of ASPS at market price of $135.00 (approximately $27,000, 4.43% of portfolio) • Sector allocation after sell: 12.87%


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