Nationstar Mortgage Holdings Inc. provides residential mortgage loan
services in the United States. The company operates in two segments,
Servicing and Originations. The Servicing segment is involved in the
calculation, collection, and remittance of principal and interest
payments; administration of mortgage escrow accounts; collection of
insurance claims; administration of foreclosure procedures; management
of real estate owned (REO); and disbursement of required protective
advances. The Originations segment is involved in the origination,
packaging, and sale of government-sponsored enterprises mortgage loans
into the secondary markets. It also provides a servicing portfolio
retention source by providing refinancing services to its existing
servicing customers; an organic source of servicing assets; and a loss
mitigation solution for its servicing clients and customers by offering
refinancing options to borrowers allowing them to lower their monthly.
To review Nationstar’s stock, please take a look at the 1-year chart
of NSM (Nationstar Mortgage, Inc.) below with my added notations:
NSM has fallen pretty hard since its $58 peak in September. The stock
finally bottomed around $25 in February and has now recovered a bit.
The previous $35 support is not acting as resistance for the stock
(red). The $30 level, which has been prior resistance, is now acting as
support. Eventually, one of these two levels will have to give.
The Tale of the Tape: NSM is trading between its $30 and $35 levels. A
long trade could be made on a pullback to $30 or on a break above $35
with a stop loss placed under the level of entry. Short setups would
occur if the stock rallied back to $35 or broke below $30.
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