He took profits in the stock when he sold Ocwen on Aug. 21, 2012 for around $85-$90. He recently reentered Altisource Portfolio Solutions on March 19, as analysts were taking down estimates post the fourth-quarter earnings report to reflect more conservative margin assumptions (due to various growth investments). Doug bought on a scale, bidding under the market. He bought dips and sold rips along the way but remains invested in this name today -- albeit, in a very small position.
If anyone played this for a maximum profit, it has traded above $120 since Doug's initial buy/suggestion.
The third and final trade to highlight in this trio is the trade in Altisource Asset Management (AAMC). Yet another play on the family that originated with Ocwen. Altisource Asset Management provides portfolio management and corporate governance services to investment vehicles that own real-estate-related assets. This is Doug's stock of the year for 2013. As Doug explained, this group of companies has been so successful because, "In a sense, the management of Ocwen Financial has created an ecosystem similar to Apple (AAPL) in which there are these symbiotic relationships between the components (ASPS, RESI and AAMC)."
He had trouble getting in on the when-issued trading of the stock (as it spun out of Altisource Portfolio Solutions) at $16 a share, but was able to buy an odd lot on Dec. 14, 2012, at $42 a share. He quickly bought another tranche under $59 on Dec. 28, 2012. The shares had serious momentum early on and hit $100 on Jan. 11, 2013, about a month after the initial offering. Prudently, Doug sold some shares for $127 on Jan. 15 and took more profits, selling a majority of the remaining shares, on March 21 after the stock neared $150. (He still holds a small position in the name.)So, there you have a road map of three of Doug's very profitable long trades. Later in the week, I plan to take a deeper dive into his winning trades on the short side.
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