Walter Investment Management Corp. (NYSE:WAC)

CAPS Rating: 3 out of 5


Player Avatar tmd6966 (< 20) Submitted: 5/16/2009 8:14:16 PM : Outperform Start Price: $10.45 WAC Score: -45.75

Spun off by WLT (Walter's Energy) and merged with Hanover Capital Mortgage, is a REIT that manages a 1.8 billion dollar portfolio of Sub-prime, prime and non-conformingl (ie Moblil Homes) Mortgages ( with a delinquency rate under 6%). Insiders have recently gobbled up shares at a furious clip taking the stock price from 7 to just under 14 in less than 2 weeks. This, in spite of generous stock grants. One director, also Chairman of WLT, took down almost 2 million dollars worth of stock in three separate buys in the open market. The only revenue this company has at present is the yield from the mortgages, but with all the gov't programs, and the mortgage servicing and insurance divisions, there could be substantial earnings power hidden by all the recent machinations required to merge the companies. Not much info available since the merger was completed only a month ago, so you really need to read every SEC filing. Could be a real sleeper.

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