Best Small Cap Stocks to Trade

Small Cap Stock Alerts in Real Time | No one provides consistent winners like Broad Street!

May 09 2016

Earnings Call and Insider Trades

See feature articles below:

 

About Broad Street Alerts:

Big opportunities in Small Cap’s

 

 

Broad Street Alerts recent profiles and track record, 153% in verifiable potential gains for our members on the last 3 small cap alerts alone!

 

February 10th, 2016- (NASDAQ: BONT) opened $1.65/share hit a high of $3.00/share within 30 days our member potential gains- 83%

 

March 7th, 2016-(NYSE-MKT: FSI) opened at .91/share and hit 1.10/share within 5 days for gains of 21% for our members.

 

March 24th, 2016- (NASDAQ: ICLD) opened at $.77/share it a high of $1.15/share within 2 days for gains of 49% for our members.

 

These are numbers that make traders drool. Any trader in any market would fall all over themselves to see numbers like this. So if you’ve been on the fence, perhaps it’s time to start doing some research and verify our numbers for yourself. We are constantly raising the bar and separate ourselves from the rest of the small-cap newsletters as the best in business.

 

We know with a large following comes a large responsibility as we have everyone from institutional investors to the beginner following our profiled securities in our newsletters. This is something we take very seriously always seeking small cap growth companies that have both near and long-term potential for our members.

***Get our small cap profiles, special situation and watch alerts in real time. We are now offering our VIP SMS/text alert service for free, simply text the word “Alerts” to the phone number 25827 from your cell phone.

 

Article for: WAC

Thank you. Good morning, everyone. During the first quarter of 2016, we maintained our national ranking as a top 10 servicer, growing the service book of business with the addition of approximately $10 billion of sub servicing arrangements, MSR acquisitions, and originated MSR to $275.7 billion and assisting approximately 12,000 homeowners in attaining modifications of their loans.

We funded loans in our originations and reverse mortgage segments of $5.2 billion, including the origination of approximately 9,500 HARP loans for the quarter. The first quarter activity allowed us to maintain our ranking as a top 15 originator in the nation.

Our first quarter results were impacted by the significant drop in interest rates experienced in the first quarter. We saw the 10-year Treasury decline a total of 49 basis points, from 2.27% on December 31, 2015 and hitting a low of 1.63% during the quarter, before closing on March 31 at 1.78%.

Our assets and liabilities accounted for using fair value methodology incurred non-cash charges relating to changes in inputs and assumptions of approximately $140.5 million after taxes, contributing a loss of $3.95 on a per share basis to the quarter’s GAAP net loss of $4.85 per share. Results reported on an adjusted basis were impacted by the rate movement, as well as the adjusted loss of $17.8 million, or $0.50 per share after tax, reflected negative impacts related to accelerated prepayments and reductions in pipeline MSR values since the date of lock.

Adjusted EBITDA for the quarter was $87.1 million, $74.6 million of which was contributed by our servicing segment, $23.8 million from originations, and a negative adjusted EBITDA of $9.5 million in the reverse mortgage segment. Our reverse segment continues to be impacted by lower gain on sales revenues, as well as the continued elevation of expenses related to regulatory changes, including the issuance of the mortgagee letters beginning in April of 2015 which change the timing and scope of those properties being moved into a due and payable status. These changes, along with the maturing of the portfolio, resulted in the largest number of loans entering this process in the Company’s history during the first quarter of 2016.

Over the course of the quarter, we made progress on a number of important initiatives, including transitioning approximately 1.4 million customers to the industry-standard servicing platform MSP, which is expected to enhance operational efficiencies within our servicing business. We also completed the closure of our retail originations channel which, along with other reorganization activities are expected to result in annualized savings of approximately $28 million.

Finally, we have advanced our early-stage reengineering initiative which we launched in the first quarter, targeted at both providing an exceptional customer experience and cost and revenue efficiencies. We are very enthusiastic about the early results and expect the initial impact of our efforts to be reflected in the second half of 2016, with significant improvements to be realized in 2017.

While we are still early in the process, it is clear that the opportunity to drive dramatic change throughout the organization is substantial. Gary will provide some additional color on our expectations associated with this initiative later in the call.

On the environment, we continue to see an evolution of the operating environment within our sector. The economic outlook predicts moderate growth. Latest expectations published by Fannie Mae included approximately $1.6 trillion of origination volumes for 2016 and a continued low interest rate environment, which remains supportive of the refi loans. The offset is the increased levels of expected prepayments on the portfolio. We believe we will continue to see rate volatility, with the curve reflecting a bias toward higher levels over time, which would serve to improve MSR valuations.

Regulatory oversight of the sector remains high, impacting both the servicing and origination businesses. While the pace of change has moderated, the associated costs continue to be absorbed through the operations.

Against this backdrop, we would expect to see acceleration of consolidation amongst the market sub scale participants, as the environment has increased fixed costs for everyone and, in some cases, reduced revenue. Financial institutions continue to focus on their core clients, allowing non-bank participants to gain market share in both servicing and originations, driven by the non-core segment of the market.

As the operating environment for mortgage sector participants continues to evolve, Walter is undertaking a number of transformative actions aimed at driving long-term value for our shareholders. First is to deliver an exceptional customer experience. We are intently focused on pursuing our goal to become a lifelong partner in home ownership for our customers.

The best way to earn our customers’ loyalty is to consistently deliver exceptional service. Exceptional service begins and ends with exceptional employees. Walter has exceptional employees. We are focusing energy company-wide to elevate awareness around the shared values of our high performance culture, values that Walter employees themselves define. Living these shared values will strengthen our Company and should dramatically improve employee satisfaction and directly impact our customer experience in a positive way.

The second key to driving value relates to operational excellence. We are intensely focused on becoming better at what we do. We must be the most efficient operator in the business. As we discussed in our fourth quarter earnings call, we have undertaken a company-wide initiative to reengineer our business processes. Though we are in the early stages of the project, we believe the opportunity is large, reaches every corner of the organization.

Deploying technologies aimed at improving our efficiencies and enhancing our customers’ interactions with us will enable this effort. The transition of approximately 1.4 million customers to MSP was, again, an important step in our efforts to modernize our technology solution, increasing efficiencies and enhancing our ability to provide an exceptional customer experience.

Finally, the efficient allocation of our capital is key to driving value. Our focus is to deleverage our balance sheet so that we can compete from a position of financial strength. We have ongoing dialogue with WCO and other third parties to establish future flow transactions and opportunistic MSR sales generally on a sub service retained basis.

We are also pursuing outsourcing opportunities as an avenue to add business to the servicing portfolio in a capital efficient matter at attractive returns. Our success with these initiatives should free up capital to augment excess cash flow generated by operations and the proceeds from the planned sale of our insurance business, which we plan to utilize to help us meet our leverage reduction targets.

In the current environment, we see significant challenges for participants and barriers to entry to the sector. We believe Walter has the scale, track record, strong relationships and determination needed to meet the challenges and be successful in an evolving sector and we are moving aggressively to transform the organization to drive value for shareholders. With that, I will ask Gary to cover the financial and operational highlights for our business. Gary?

——————————————————————————–

Gary Tillett, Walter Investment Management Corporation – CFO [4]

——————————————————————————–

Thanks, Denmar. In the servicing segment, despite increase prepayments, our servicing UPB grew 4% to $255.3 billion, ranking us as a top 10 national servicer.

The service portfolio increased through $17.5 billion of additions, including approximately $10 billion of sub servicing UPB from our previously announced RCS transaction and approximately $3.6 billion UPB of distressed GSE mortgage loans. This increase was offset by higher than expected levels of prepayments, driven by the low interest rate environment.

The servicing business delivered $74.6 million of adjusted EBITDA and an adjusted EBITDA margin for the quarter of 12 basis points, in line with previously provided targets of 11 basis points to 15 basis points. Servicing’s adjusted loss for the quarter of $1.2 million reflects the impact of continued low interest rates. Included in adjusted earnings are fair value reductions of MSRs related to accelerated prepayments, as well as the effect of pipeline MSR declines since the date of lock.

During the quarter, we transitioned a significant portion of our servicing portfolio to the MSP platform. While provisions for excess costs related to this transfer were included in our operating plans, we incurred approximately $5 million above our expectations for the project, further impacting profitability. Given the low interest rate environment today, we believe the adjusted earnings margin for the servicing sector could be lower than our previously provided target, as we would expect to continue to see elevated levels of prepayments in the near term, particularly in the portfolio accounted for at fair value.

We continue to pursue outsourcing opportunities with our clients, as well as transactions with WCO and other potential counter parties, as we look to increase the mix of sub servicing business in our portfolio, adding product to the platform in a capital efficient manner. Through our company-wide initiative to reengineer our processes, we are targeting improvement in core operations through the deployment of technology, with the recent transition of 1.4 million accounts to MSP serving to launch this component of the initiative. Our reengineering efforts are expected to drive continuous improvement of our cost structure and enhancement of revenue opportunities over time.

Let’s now turn to the originations segment, which maintained solid margin performance despite volume declines. Originations funded $5 billion of UPB in the current quarter, a decrease of 9% as compared to the prior-year quarter. However, the combined direct margin of 80 basis points for the current quarter increased 11 basis points over the prior-year quarter, driven by a shift in mix from the lower margin correspondent channel to the higher margin consumer channel.

The segment generated adjusted EBITDA of $23.8 million and adjusted earnings of $17.9 million for the quarter. The Q1 recapture rate increased sequentially to 26% from 23% in the fourth quarter of 2015, as we remain focused on maximizing a retention opportunity resident in our portfolio of approximately 476,000 in the money accounts.

We have also increased our investment in building our consumer lending channel, including the addition of a new leader, and plans to expand our sales force with a goal of increasing our recapture rates and maximizing earnings in the continued low interest rate environment. However, as part of our capital management strategy, we have increased our return holders for MSRs acquired, which has negatively impacted volumes in the correspondent channel. As a result, correspondent channel volumes for 2016 may be negatively impacted.

As announced earlier this year, we exited the retail channel in January as part of our further reorganization efforts in Ditech. As a result, during the first quarter of this year, our indirect expenses in the origination segment decreased from prior year run rate, driven by reductions in support expenses related to this channel and increased cost efficiencies, representing a portion of the $28 million annualized savings expected to be achieved through the closure of the retail channel and our other reorganization activities undertaken in the first quarter.

As part of our efforts to improve the customer experience, we are working to deploy technology solutions, which include investing and digital technologies and point-of-sale services designed to improve our self-serve capabilities. We are piloting these technologies now and expect to roll them out more broadly during the third quarter.

The reverse segment experienced another challenging quarter, with results reflecting the impact of significantly reduced originations volumes and continued elevated expenses driven by increased defaulted mortgage activity resulting from 2015’s regulatory changes. Reverse’s negative adjusted EBITDA of $9.5 million and adjusted loss of $10.4 million for the first quarter of 2016 reflect the impact of lower gain on sale revenues attributable to lower volumes and a reduction in net servicing revenues and fees.

Despite these disappointing results, we believe in the value of the RMS franchise and are taking steps which we believe will drive meaningful improvement to the business. These steps include continuing to strengthen the management team, enhancing sales operations to drive increased consumer channel volumes, and maintaining a disciplined approach to our investments in the correspondent and wholesale channels.

In the default servicing area, we have made significant improvements that should result in materially reduced curtailment charges caused by defaults in the portfolio. Given the current market conditions and the segment’s first quarter losses, we anticipate achieving positive adjusted earnings for the year will be a challenge.

As Denmar mentioned, we currently have a high priority project underway to drive efficiencies across the organization and maintain discipline around capital allocation to improve the financial strength of our balance sheet. We have substantially negotiated the terms of an agreement to sell the insurance business and are awaiting regulatory input before finalizing the agreement.

As we have previously mentioned, our discussions with WCO and other potential counter parties related to future flow transactions and other select MSR sales are an important component of our strategy to enhance our balance sheet strength by reducing our investment in MSRs. To this end, during the quarter we entered into a binding letter of intent to sell $4.6 billion of UPB of GSE MSR to a third party with servicing release.

During the first quarter, we prepaid approximately $7.2 million par value debt for approximately $6.3 million and expect that we will utilize a combination of excess cash flows from operations, proceeds from the planned sale of our insurance business, and potential sales of MSR to further reduce our corporate debt in the future.

And lastly, as we indicated in February, we recently initiated a significant reengineering project designed to improve efficiency across the organization. Based on our preliminary review of certain areas of the Company, we have already identified opportunities for improvement in the $60 million to $75 million range. One-time costs to achieve these improvements are estimated in the $20 million to $25 million range.

Implementation of many of the actions related to this phase of the project is already in process and we expect to see a meaningful impact on results in the second half of 2016. Based on the findings of this preliminary analysis, we accelerated a more comprehensive review of the business, which includes expanding the scope of the project company-wide and going deeper into areas already reviewed. We expect to find additional significant opportunities as we move forward and plan to provide an update on the second quarter earnings call.

We are not satisfied with our recent performance and are fully focused on improvement in the future. I will now turn the call back to Denmar for a quick wrap-up review. Denmar?

——————————————————————————–

Denmar Dixon, Walter Investment Management Corporation – CEO [5]

——————————————————————————–

Thank you, Gary. I will be brief. The summary for the key takeaways for the business are as follows. We see a market opportunity set that we believe we can successfully deploy the strengths of our platform against. We see three keys necessary to drive shareholder value, a great customer experience, best-in-class operational efficiency, and intelligent capital allocation.

We plan to meaningfully improve customer experience by first focusing on our own employees and our cultural values. On an operating basis, we are identifying significant opportunities to reduce cash costs, drive revenue and create efficiency gains across the platform for a redesign of our processes and the deployment of technology solutions. In addition to our operational transformation, we will focus on our balance sheet-related actions. We’re targeting a significant reduction in leverage and pursuing several transactions to add to service UPB in a capital efficient manner.

Source – Reuters

 

wacchart

 

 

Broad street alerts has not been compensated for the mention of any publicly traded companies in this article nor do we own positions in any of the companies in this article.

 

 

Stock market

 

Hot small cap stocks

 

small cap stock picks

 

Biotech stocks

 

FDA approval stocks

 

FDA calendar

 

Trade stocks

 

Become a day trader

 

Day trade stocks for a living

 

PDUFA date set

 

micro cap stocks

 

Best stocks 2016

 

Hottest small cap stocks

 

Best stock picks

 

Who to follow for stock picks

 

Apple news stock picks

 

Stock picks on apple news

Written by broadAdmin · Categorized: Uncategorized

Privacy Policy and Disclaimer

Transparency is very important to us.

Please view our full privacy policy and disclaimer below.

 

 

 

Privacy Policy and Disclaimer
Your Consent
By using our site, you consent to our online privacy policy and disclaimer.
Do we disclose any information to outside parties?
We do not sell your information to anyone.
What information do we collect?
We collect information from you when you subscribe to our newsletter or fill out a form on one of our social platforms. This includes your email address and or mobile phone number.
When registering on our site, as appropriate, you may be asked to enter your: e-mail address and or mobile number.
What do we use your information for?
When we collect your email or mobile number it is used for one purpose to send you the information you requested about small cap stocks. Please read our disclaimer carefully before viewing our emails.
Your information, whether public or private, will not be sold, exchanged, transferred, or given to any other company for any reason, other than our CRM providers for the express purpose of delivering the information on stocks that you requested.
We send periodic emails.
The email address you provide may be used to send you information, the small cap stock reports you requested, respond to inquiries, and/or other requests or questions.
How do we protect your information?
We implement a variety of security measures to maintain the safety of your personal information when you enter, submit, your email address. We use secure third parties to send email and SMS messages to you.
Because we value your privacy, we have taken the necessary precautions to be in compliance with the California Online Privacy Protection Act.
Online Privacy Policy Policy
This online privacy policy applies to information collected through our website and social media platforms.
Contacting Us
If there are any questions regarding this privacy policy or disclaimer you may reply to this email.
Disclaimer
BroadStreetAlerts. com is a wholly owned subsidiary of Small Cap Specialists LLC, herein referred to as SCS LLC.
This website / media webpage is owned, operated, and edited by Small Cap Specialists LLC. Any wording found on this website / media webpage or disclaimer referencing to “I” or “we” or “our” or “SCS LLC” refers to Small Cap Specialists LLC. This website / media webpage is a paid advertisement, not a recommendation nor an offer to buy or sell securities. Our business model is to be financially compensated to market and promote public companies. By reading our website / media webpage you agree to the terms of our disclaimer, which are subject to change at any time.
Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our services, joining our site or our email/blog list as well as any social networking platforms we may use. SCS LLC’s business model is to receive financial compensation to promote public companies. To conduct investor relations advertising, marketing and publicly disseminate information not limited to our Websites, Email, SMS, Push Notifications, Influencers, Social Media Postings, Ticker Tags, Press Releases, Online or Phone Interviews, Podcasts, Videos, Audio Ads, Banner Ads, Native Ads, Responsive Ads. This compensation is a major conflict of interest in our ability to be unbiased regarding. Therefore, this communication should be viewed as a commercial advertisement only. Note, we periodically conduct interviews and issue stock alerts that we are not compensated for, these are purely for the purpose of building our brands. We have not investigated the background of the hiring third party or parties. The third party, profiled company, or their affiliates likely wish to liquidate shares of the profiled company at or near the time you receive this communication, which has the potential to hurt share prices. Frequently companies profiled in our alerts may experience a large increase in volume and share price during the course of investor relations marketing, which may end as soon as the investor relations marketing ceases. Our emails may contain forward-looking statements, which are not guaranteed to materialize due to a variety of factors. We do not guarantee the timeliness, accuracy, or completeness of the information on our website / media webpage. The information in our website / media webpage is believed to be accurate and correct but has not been independently verified and is not guaranteed to be correct.
Please Note: SCS LLC and its employees are not a registered investment advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever.
Release of Liability: Through use of this website viewing or using you agree to hold SCS LLC, its operator’s , owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information in our website / media webpage is believed to be accurate and correct but has not been independently verified and is not guaranteed to be correct. The information is collected from public sources, such as the profiled company’s website and press releases, but is not researched or verified in any way whatsoever to ensure the publicly available information is correct. Furthermore, SCS LLC often employs independent contractor writers who may make errors when researching information and preparing these communications regarding profiled companies. Independent writers’ works are double-checked and verified before publication, but it is certainly possible for errors or omissions to take place during editing of independent contractor writer’s communications regarding the profiled company(s). You should assume all information in all of our communications is incorrect until you personally verify the information, and again are encouraged to never invest based on the information contained in our written communications. The information in our disclaimers is subject to change at any time without notice. Some of our claims regarding gains could be based on intra-day, pre-market and after-hours trading data.
All information on featured companies is provided by the companies profiled or is available from public sources and SCS LLC makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. None of the materials or advertisements herein constitute offers or solicitations to purchase or sell securities of the companies profiled herein and any decision to invest in any such company or other financial decisions should not be made based upon the information provide herein. Instead SCS LLC strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D.
SCS LLC is compliant with the Can Spam Act of 2003. TNS LLC does not offer such advice or analysis, and SCS LLC further urges you to consult your own independent tax, business, financial and investment advisors. Investing in small and micro-cap growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled.
The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results.
In preparing this publication, SCS LLC has relied upon information supplied by its customers, publicly available information, and press releases which it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this website. Rather, investors should use the information contained in this website as a starting point for doing additional independent research on the featured companies. The advertisements in this website are believed to be reliable, however, SCS LLC and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of materials facts from such advertisement.
SCS LLC is not responsible for any claims made by the companies advertised herein, nor is TNS LLC responsible for any other promotional firm, its program or its structure.
SCS LLC is not affiliated with any exchange, electronic quotation system, the Securities Exchange Commission or FINRA. SCS LLC is not a Broker/Dealer and does not engage in high frequency trading.

 

 

Most Publicly Traded Companies Engage in Some Form of Paid Media, Investor Relations and Advertising. 

Copyright © 2023 · Broad Street Alerts · All Rights Reserved

Manage Cookie Consent
We use cookies to optimize our website and your experience.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}