Something for Nothing: DJSP, Hear USA
For those of you who aren't familiar with me, a lot of what I've done recently is in the space of Chinese micro-caps. But with that being said, I specialize in finding the most undervalued companies in the world. I've got two companies of the American variety that could be in your backyard. In my opinion, I'm looking at companies priced to shrink that are boiling over with uncontainable growth.
DJSP Enterprises (DJSP) is one of the largest providers of processing services for the mortgage and real estate industries in the United States. Who cares? Well, you should if you're an investor. In my opinion, there is a lot of money to be made. The company is looking to add additional clients and has carried several of its clients for more than 15 years. It's incredibly scalable; its margins are big.
Foreclosures are going to go through the roof because as we all know in the last decade many mortgages were financed to those who were unable to pay them. It is expected that there will be default rates of around 50% in some mortgage classes. If you really love the story, you can go straight for the warrants and buy DJSPW. Be careful, these expire Aug. 11, 2012, and convert at $5. I wouldn't recommend these for novice investors. The greatest news is that they are currently priced to shrink! I'll be laughing all the way to the bank on this one. Clock it -- I'm calling 100% return and more in the next year.
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