Hey investors, PENNYMAC FINANCIAL SERVICE is at the top of a balance zone, which it can break to go to another !! Watch for it not turning over on the trend line.
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PennyMac Financial Services is one I already owned $1000 of, because it was already one of the cheapest booming companies out there, with a PEG ratio of just 0.48. It's looking even better after today's earnings report, with big beats on both earnings and revenue. Unfortunately, I can't seem to get a buy order filled after hours.
The break-out coincided by a note from Piper Jaffray about outperformance among Mortgage Originators. This was followed by decent performance by major Wall Street banks this week in their earnings reports. Many showed 30% Q over Q growth in either mortgage revenues or origination volume.
I wrote about this stock on Seeking Alpha recently. The company is making money hand over fist with mortgage rates dropping. The uptick in the chart is due to a rapid decline in mortgage rates, which is driving operational improvement. The company should have a record profit for the quarter.
