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Michigan’s attorney general announced that he issued a criminal investigative subpoena against LPS. And last week we learned that the foreclosure problems are having a financial impact on LPS. Because of the investigations that involve LPS and many major mortgage companies, lenders have slowed down the pace of foreclosures.
There's a ton of short interest in this stock, so any respite in pressure will mean temporary and exaggerated recovery in price as the shorts scramble to cover. I plan to stay short through the volatility and scrape the bottom of this barrel.
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Although speculation is not one of my favorite strategies, one can only wonder what the ramifications are for LPS' role in the "Robo Signing" debacle. I think this company will go completely bankrupt within the next few years. All the pending litigation and fraud will come crashing down on them. Not only will this company earn less money from foreclosures currently on their books, but any bank would be completely stupid to give them more business after what they have done. As revenue declines as expected, the monetary damages will far exceed what they will be able to pay out. Chapter 7, anyone? It's only a matter of time, IMO.
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magic formula
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Here's the sell rec:
http://www.fool.com/investing/general/2010/12/21/rising-star-shorts-bank-of-america-and-lender-proc.aspx
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http://www.fool.com/investing/general/2010/12/21/rising-star-shorts-bank-of-america-and-lender-proc.aspx
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LPS network employees and attorneys were the kings and queens of "robo-signing" -- and LPS is now paying the piper.
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Wish I got it earlier today after false news report killed it. These guys will be buried in business with bancruptcies and foreclosures this year.
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New to CAPS rating. 2 Star rating w/ P/E Ratio of 0.00 following a significant drop in market the previous day. Price near 52 wk low w/ a range of 28.51-36.63. Currenly beating the SPY by about 25%. Trying to rate at a low point. This company processes foreclosures, refinances, etc. Seems to be the right company for the right time with all of the housing issues within the United States. Should be a good play profiting on tough economic situations. Track closely and re-evaluate in Jun09.
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