NEW YORK ( TheStreet) -- Nationstar Mortgage Holdings (NSM - Get Report) investors are hoping the company may look to spin off its Solutionstar unit, as they look to replicate the astonishing success of spin-offs by fellow mortgage servicer Ocwen Financial (OCN - Get Report).
"I fully expect them to do this, but they won't confirm it because they can't," FBR Capital Markets analyst Paul Miller says of a potential Solutionstar spin-off. "If you ask them they say we're not allowed to have that discussion which tells you they're thinking about it," he says.
While Nationstar has seen shares triple over the past 12 months, and Ocwen's stock has risen by 176%, Ocwen spin-offs have been even more impressive. Altisource Portfolio Solutions (ASPS) is up 500% since Ocwen spun it off in August 2009.
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