Lender Processing Services Inc: Free Cash Flow Machine with Surmountable Legal Obstacles ($LPS, $FNF)

Lender Processing Services, Inc. (NYSE: LPS) provides technology and services to the mortgage lending industry, with its primary customers being top 50 financial institutions. It is the market leader in mortgage processing and default management services in the United States. Approximately 35% of revenues are derived from its Technology, Data and Analytics segment which provides solutions for automating loan servicing, with the remaining 65% derived from its Loan Transaction Services segment which helps mortgage lenders reduce the expense of managing . . .

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Investors Title Company: Assets represent significant upside potential (ITIC, FNF, FAF)

Investors Title Company (ITIC) issues residential and commercial title insurance, which protects property buyers from title defects that could affect the ownership of the property (e.g. prior unsatisfied mortgages, tax liens, assessments, inaccurate legal descriptions). I am writing this on 3/22/11, and the shares closed yesterday at $31.25, which represents a Price to Book of 0.68x, and a Price to Earnings of 11.24. This compares to 0.9x and 14.22 for First American Financial Corporation (FAF) and 0.92x and 8.69 for . . .

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