Walter Investment Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of asset manager Walter Investment Management (ASE: WAC) surged 17% Tuesday after its second-quarter results impressed investors.
So what: Walter's adjusted income of $0.23 per share was just in line with analyst estimates, but given the stock's 30% beating over the past few weeks, it's no surprise that only "decent" results are fueling a big bounce. During the quarter, Walter also completed the acquisition of loan servicer Green Tree Credit Solutions, possibly signaling the start of a new, higher-growth period for the company.
Now what: Don't let today's pop keep you from looking into Walter. "[T]he secular shifts in the industry which motivated us to make this strategic acquisition have continued to gain momentum," said Chairman and CEO Mark O'Brien. "We believe Walter Investment is well-positioned to capitalize on these opportunities, allowing us to significantly grow revenues from recurring, fee-based sources with high operating margins." With the stock still sporting a juicy dividend yield of 9%, Walter's total-return potential seems worth considering.
Interested in more info on Walter Investment Management?Add it to your watchlist.
At the time thisarticle was published Fool contributorBrian Pacamparaowns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool'sdisclosure policyalways gets a perfect score.
Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.