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Investors use an earnings miss as an excuse to take profits in commercial lender Walker &...

Investors use an earnings miss as an excuse to take profits in commercial lender Walker & Dunlop (WD -6.2%). Q4 revenue more than doubled Y/Y and the company presentation makes clear the continuing opportunity with $840B in commercial loans maturing in the next 5 years. There's also the servicing portfolio: Now at $35.2B, not subject to prepayment risk, and with fees of $680M expected over its life - about equal to the company's current market cap.
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Comments (1)
  • Mike Maher
    , contributor
    Comments (2732) | Send Message
     
    You have to discount the fees to get a present value of the stream of payments. Comparing it to the market cap is comparing apples and oranges.
    6 Mar 2013, 12:21 PM Reply Like
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