Long Position on HLSS @ $17.35 on 10/8/2012 (Momentum)

Home Loan Servicing Solutions (HLSS) engages in acquiring mortgage servicing assets, primarily subprime and Alt-A mortgage servicing rights and associated servicing advances. The Company is formed to acquire mortgage servicing assets, primarily subprime and Alt-A mortgage servicing rights and associated servicing advances. The Company will engage residential mortgage loan servicers to service the pools of mortgage loans underlying the mortgage servicing rights. The Company acquire and therefore do not intend to develop its own mortgage servicing platform. The Company is focused to enter into the subservicing agreement to provide for the servicing of the initial mortgage servicing rights for an initial term of seven years. Shares are in the process of forming a "cup and handle" and are presently in the handle part of the formation. This is an entry point for the stock. We expect shares to break higher out of this formation.

52-Week Trading Range:  $12.80 - $18.11

Last Trade: $17.35

Stop Loss: $16.48

Target Price: $19.08

Position closed on 10/19/2012 at price of $19.25 with a 10.95% gain in 11 days.

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