Two emerging financial names to watch

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It may seem that the banking sector is rocked by negative headlines on a daily basis, but bullish developments are brewing elsewhere in the industry.

Our researchLAB service shows that a pair of companies have recently emerged in a new subset of the financial universe: loan servicers . They are Ocwen Financial (OCN), which had some long-term call buying last month, and Nationstar Mortgage (NSM), which had some interesting put selling earlier this week.

These two companies are up a 48 percent in the last three months, making them No. 2 among the 100-plus groups tracked by researchLAB. (They trail only the anti-obesity drug makers, such as Arena Pharmaceuticals and Vivus.)

The story for OCN and NSM appears to be simple growth. Both have snatched up servicing rights on mortgages and are finding ways to get borrowers to pay back. These names appear to have flown under the radar, so there could be significant upside potential as people learn about this group.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


This article appears in: Investing , Options

Referenced Stocks: NSM , OCN

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