Stonegate Mortgage (NYSE:SGM) is a rarity among IPOs recently; it came public at a reasonable price despite having a real business, which is profitable and offers enormous opportunities to capitalize on the recovery in the US real estate markets. While most of the Street hasn't yet picked up on the opportunity yet, I believe this ~$440 million market cap firm is a strong candidate to more than triple EPS from $1.85 this year to $5.70 for 2015. Given this, and with SGM currently trading around $17.00 a share, I see the stock as an extremely attractive play in the financials space with upside of more than 65% versus very limited downside of 10%.
Firm is seeing Significant Growth...
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