+ Watch DJSP
on My Watchlist
Hoping for $1+ ... Babo and UltraLong
dead cat bounce
This is a great company that has limited down side, but tremendous upside.
Seems promising, purely speculative. Lets see what happens
this is scary. but i feel lucky
Dead cat bounce?
The lawsuits are falling apart. This company has been beaten down for far too long and is ready to explode.
hoping this dip is temporary, will buy in real life if the stock goes any lower
Great idea! Often when dealing with real estate, I want information, but necessarily legal information. Nice niche here!
I am definitely taking a bit of a gamble with this one (have you seen their chart lately? Ewww!) However, IMO the potential upside at this level significantly outweighs the potential for further negative pressure on the stock.After skimming through other Capsters thoughts about DJSP, it seems as if there is a little confusion about what/who DJSP really is. Hopefully I can help clear this up a bit.DJSP is a recently formed (January 2010) corporation that essentially combined several other profitable businesses into one entity. Before this date, the company was a shell company, i.e. it had money but no revenue etc., named Chardan 2008 China Acquisition Corp. The combination of the non-legal business from the Law Offices of David J. Stern (“DJS”), Professional Title and Abstract Company of Florida, Inc. (“PTA”) and Default Servicing, Inc. (“DSI”) (collectively, the “Stern Contributors”) formed the current company named David J. Stern Processing Enterprise (DJSP).Now, you essentially have a company that helps people get through the process of foreclosures etc.The important part is that all three business segments were profitable before the merger, and all three segments had a strong tradition of growing revenue and net income. Below is the combined revenue and combined net income for these three parts for the last several years:2006: 40M rev., 9M net income2007: 115M rev., 39M net income2008: 200M rev., 43M net income2009: 260M rev., 45M net incomeThose are some pretty solid numbers. The best part is, DJSP primarily does business in Florida, ha ha ha, we all know how well FL real estate is doing right now! Thus, DJSP is almost guaranteed to continue growing revenue and profit as things are only going to continue to get worse as more and more mortgages are resetting the next several years in Florida and the rest of the country. Hello Alt-A and Option Arm loans!!!The only concern I have is that we don’t have a lot to work with here, there is a long financial track record for the individual business aspects, but only about 6 months for the one single entity. Overall this looks like a solid pick and it’s getting my green thump at the very least.
For the techincals on DJSP, see UltraLong's pitch and then combine it with this:DJSP is down nearly 20% today on the news of....well, I'm not sure what. Two class action lawsuits have been filed in the last week against DJSP. Both suits are filed on the basis of defrauding investors. The plaintiff(s) claim is that DJSP's decision to retract guidance in May was injurious to investors and constituted fraud perpetrated by the officers of the company based on a previous statement that... "there is no stopping this inflow of continued defaults that we anticipate to go for another two or three years....foreclosure volumes through 2012 are expected to increase dramatically"The plaintiff(s) will have to prove that this constituted knowingly issuing false or misleading statements. Maybe the local hospital closed down and there were no ambulances to chase, because this smells like frivolous litigation.In the meantime, DJSP announced the successful completion of the acquisition of Timios, Inc., expanding the footprint of their services.DJSP is getting manhandled by the short contingent for now. But that won't. There's a chance that the lawsuits could lead to damamges, but I think the chance is remote. It may take some time, but this should bounce back.
Expanding REO closing and liquidation services. 2010 guidance was lowered to $1.29-1.35 eps which cut the PPS in half....now undervalued. If you like high risk/high reward, check out the warrants (DJSPW) that expire 8/11/12 at $5.
DJSP Enterprises is as far as I'm concerned, one of the greatest ideas since sliced bread. This company provides non-legal services regarding residential foreclosures and lender owned real estate. Basically, their services which are already booming should be ready to take off in 2011 and 2012 as a new wave of foreclosures hits the market. Revenue growth rates should get really close to 20% while the company guided 2010 profits to $1.32-$1.36 a share. So pretty much the company is trading at only 4.1 times 2010 earnings and well under 4 times 2011. I'm looking to nab DJSP on a limit buy at $4.55 which would be only 3 times 2011's profit projections. Maybe I'm a tad high on my EPS figures, but its a foreclosure service...in FLORIDA! C'mon, we all know they're going to be busy through 2013.UltraLong
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