Why Oppenheimer Is Still Cautious On Ocwen Financial Corp


Oppenheimer analyst Ben Chittenden weighed in with a few insights on Ocwen Financial Corp (NYSE:OCN), after the company reported its preliminary fourth-quarter results yesterday.

Chittenden noted, “While we knew it was going to look bad based on their prior disclosures (12/22 & 2/5), we would still classify the numbers as terrible (and even that may be generous). By our calculations, the normalized PT earnings in 4Q were negative $9M and the normalized operating cash flows were negative $1M. Thus, even on the company’s own definition of “normal,” they still didn’t make any money. So there was no real clarity on the going concern question, although 4Q earnings did help to put some of the company’s recent actions into context. We are updating our estimates and rolling out a FY16 estimate of $1.00.”

The analyst rates OCN a Perform, without suggesting a price target. Ocwen Financial shares are currently trading at $7.67, down $0.29 or 3.64%.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ben Chittenden has a total average return of -7.7% and a 36.0% success rate. Chittenden has a -34.1% average return when recommending OCN, and is ranked #3450 out of 3574 analysts.

Out of 7 analysts who cover Ocwen Financial, two gave it a Buy rating, four recommended a Hold whereas only one rated it a Sell. The 12-month consensus target price on the stock is $21.50, showing a return potential of 155% based on the current stock trading price.

 

  • Diostebendiga0

    THIS WHAT OCWEN DID USING HOMEQ AND ACREDITED HOME LOANS!
    Prospectus Supplement dated November 23, 2004 (To Prospectus dated November 8,
    2004)

    $4,106,500,000 (APPROXIMATE)
    CREDIT SUISSE FIRST BOSTON CITIGROUP
    (Joint Lead Managers and Joint Book Runners)

    BNP PARIBAS MERRILL LYNCH & CO.
    (Co-Managers)

    ASSET-BACKED PASS-THROUGH CERTIFICATES,
    SERIES 2004-WHQ2

    PARK PLACE SECURITIES, INC.
    DEPOSITOR

    AMERIQUEST MORTGAGE COMPANY
    SELLER

    HOMEQ SERVICING CORPORATION
    MASTER SERVICER

    YOU SHOULD CONSIDER CAREFULLY THE RISK FACTORS BEGINNING ON PAGE S-11 IN THIS
    PROSPECTUS SUPPLEMENT AND PAGE 1 IN THE PROSPECTUS.
    Before deducting expenses payable by the Depositor estimated to be
    approximately $800,000.
    SUMMARY OF PROSPECTUS SUPPLEMENT
    Title of Series……………. Park Place Securities, Inc., Asset-Backed
    Pass-Through Certificates, Series 2004-
    WHQ2.

    Cut-off Date………………. The close of business on November 1, 2004.

    Closing Date………………. On or about November 30, 2004.

    Depositor…………………. Park Place Securities, Inc. (the
    “Depositor”), a direct wholly-owned
    subsidiary of Ameriquest Mortgage Company
    and an affiliate of the Originators. The
    Depositor will deposit the mortgage loans
    into the trust. See “The Depositor” in the
    prospectus.

    Seller……………………. Ameriquest Mortgage Company (the “Seller”),
    a Delaware corporation. See “Pooling and
    Servicing Agreement–The Seller” in this
    prospectus supplement.

    Originators……………….. Argent Mortgage Company, LLC and Olympus
    Mortgage Company. See “The Mortgage
    Pool–Underwriting Standards of the
    Originators” in this prospectus supplement.

    Master Servicer……………. HomEq Servicing Corporation, a New Jersey
    corporation. See “Pooling and Servicing
    Agreement–The Master Servicer” in this
    prospectus supplement.

    Trustee…………………… Wells Fargo Bank, N.A. (the “Trustee”), a
    national banking association, will be the
    Trustee of the trust, will perform
    administrative functions with respect to the
    certificates and will act as the initial
    paying agent and certificate registrar. See
    “Pooling and Servicing Agreement–The
    Trustee” in this prospectus supplement.

    Custodian…………………. Deutsche Bank National Trust Company (the
    “Custodian”), a national banking
    association, will be the Custodian with
    respect to the mortgage loans. See “Pooling
    and Servicing Agreement–General” in this
    prospectus supplement.

    NIMS Insurer………………. One or more insurance companies (together,
    the “NIMS Insurer”) may issue a
    financial guaranty insurance policy covering
    certain payments to be made on net
    interest margin securities to be issued by
    a separate trust and secured by, among
    other things, all or a portion of the Class
    CE, Class P and/or Residual Certificates.

    Distribution Dates…………. Distributions on the Certificates will be
    made on the 25th day of each month, or, if
    such day is not a business day, on the next
    succeeding business day, beginning in
    December 2004 (each, a “Distribution Date”).

    Certificates………………. The classes of Certificates, their
    pass-through rates and initial certificate
    principal balances are shown or described in
    the table below.