Scopia Capital Has Almost 10% of PHH Corp

Page 1 of 2

Scopia Capital now owns 5.7 million shares of PHH Corporation (NYSE:PHH), which according to a filing with the SEC gives it almost 10% of the total shares outstanding. The fund had owned 5 million shares at the end of September, according to its 13F filing (see more stocks Scopia owned), so overall Scopia has added shares in the last three and a half months. PHH is a credit services company with three business segments: mortgage production, mortgage servicing, and vehicle leasing and fleet management services. Matt Sirovich and Jeremy Mindich co-founded Scopia in 2001 and the fund reported over $2 billion in assets under management in early 2012.

For the most part, revenue from PHH’s various sources was about flat in the third quarter of 2012 compared to the same period in the previous year. The company did have a sizable gain on mortgage loans, a business which is responsible for about 40% of revenue, but most of the increase in net revenue was due to lower net loan servicing losses. Expenses swelled slightly, with the result that overall PHH had a net loss of $42 million. This was a 72% decline in losses from a year earlier, but still represented EPS of negative 74 cents. In the first nine months of 2012, the company lost 42 cents per share.

The stock price has more than doubled in the last year as the market generally expects PHH Corporation to improve its financials. Wall Street analysts are even more optimistic, with their earnings expectations for 2013 implying a current-year P/E multiple of only 8. We’d also note that the P/B ratio is 0.9, so the stock is trading at a small discount to the book value of its equity (though, of course, it is currently doing a poor job of monetizing those assets). There is a considerable amount of bearishness in the market, with the most recent data showing that 27% of shares outstanding are held short. Our database of insider trading filings shows one insider buying the stock last August, though those buys came at a significantly lower price than where PHH currently trades (research insider purchases at PHH).

PENNANT CAPITAL MANAGEMENT

Allan Fournier’s Pennant Capital Management reported owning 5.1 million shares of PHH Corporation at the end of September, and this position was worth over $100 million at that time (check out Fournier’s stock picks). PHH was also one of the ten largest holdings in Fine Capital Partners’ portfolio; that fund is managed by Debra Fine (find more of Fine’s favorite stocks).

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!