Home Loan Servicing Solutions Ltd (NASDAQ:HLSS) traded at $0.67 in the last trading session compared to the closing of $17.18 in the previous trading session. This devaluation is not the result of a violent crash in the exchange, just that the stock is trading ex-dividend now from Aril 28th. A cash dividend of $16.613 was paid on April 27th and that is now perfectly reflected on the current trading price. The dividend yield is obviously very large at 1159.72% and the total liquidating distribution stands at nearly $1.2 billion.
Home Loan Servicing Solutions Ltd (NASDAQ:HLSS), a finance company, includes McGraw Hill Financial Inc (NYSE:MHFI) and American Express Company (NYSE:AXP) and a few more. The company has announced last week that NASDAQ has sent a notice of delisting to it. According to the letter, pursuant to the discretionary authority of the Listing Qualifications Staff under Listing Rule 5101, the delisting will be effective at the opening of business on April 29, 2015. The company has no intention of appealing against the Staff’s decision.
The Distribution amount having been paid, Home Loan Servicing Solutions Ltd (NASDAQ:HLSS) will now file a proxy statement regarding a proposed merger of a subsidiary of New Residential Investment Corp with the company. The shareholders of the company are supposed to receive $0.704059 per share or approximately $50 million upon the consummation o the proposed merger and all shares of Home Loan Servicing Solutions Ltd (NASDAQ:HLSS) will be cancelled automatically.
Technically, the stock started to show signs of weakness even before 2014, with the series of lower highs and lower lows getting firmly established. The downtrend never hinted at any reversal and long back had crashed to $10 levels from $21 in just 4 weeks. The delisting makes the technical or any analysis immaterial now.