Altisource Portfolio Solutions: The Long Case

| About: Altisource Portfolio (ASPS)
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Altisource Portfolio Solutions (NASDAQ:ASPS) was a strong gainer at the close of 2009 as significant volume at the end of the year pushed it to new highs. The company is a provider of real estate, mortgage, and asset recovery services and their market cap is currently in the vicinity of $553 million. As the financial sector continues its recovery in 2010, ASPS is a great place to be positioned amongst the smaller companies in the sector.

This is because the stock will continue to show strong momentum early in 2010 and I expect that it will reach new highs. In addition to the strengths of its technical indicators, the company has a very capable management staff to power its growth potential. I also see the asset recovery arm of the business as being a strong driver for earnings this year.

It is also likely that the company will attract even more investor interest this year. Already in the first two trading days of the New Year, it continued to trade at volumes significantly higher than its average for the past three months.

Piper Jaffrey is also bullish on the stock, citing strong earning potential among its reasons for giving it an “overweight” rating at the end of December.

Therefore, investors with confidence in the financial sector should consider ASPS. It is a great choice since the stock has greater potential to move upward than larger companies as it has not yet been discovered by many investors.

Disclosure: No positions