Tuesday, April 29, 2014

Nationstar Mortgage Holdings Inc (NYSE: NSM)

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:
1-year chart of NSM (Nationstar Mortgage, Inc.)
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.
Please share this article

No comments:

Post a Comment