Saxon Capital, Inc. (SAXN $29.96) is licensed to originate loans or is exempt from licensing requirements, in 49 states, through its wholly owned subsidiaries Saxon Mortgage, Inc. and America's MoneyLine, Inc.  Saxon primarily is engaged in originating and purchasing single-family residential mortgage loans and home equity loans through three production channels: brokers, correspondent lenders and direct consumers. The Company also, as servicer of record, purchases loans from prior securitizations pursuant to the clean-up call provisions of the trusts.  

Sales revenues and earnings percentage increases over the recent series of financial comparisons admittedly show sequentially smaller gains which hint at growth deceleration that could be a concern going forward.  However, that is the worst shot I can take at Saxon's fundamental history which is otherwise quite superb.  Among the financial group, particularly mortgage related companies, the market is showing plenty of widespread strength that offers confirmation that in choosing among the group we are selecting an area of definitive market leadership.  Recent insider buying in this issue is another small vote of confidence reported on February 11th as the stock spiked near its historic highs.

Technically it broke out back on December 2, 2003 from a long flat base, then after consolidating awhile it broke out again on January 5, 2004.  Over the past seven weeks it has zigzagged and traced out a base, staying well above its 50-day moving average line.  The early action today has been strong and this may lead it to a new high close over the pivot point and above the best prior close of $29.11 on February 17, 2004.   On breakouts we like to see better than 50% above average volume  which is the minimum guideline suggested by O'Neil for a proper technical buy signal. 

IMPORTANT NOTES: News headlines have recently included some important developments for the company including a February 19, 2004 release concerning the securitization by its subsidiary and the related offering of $1.1 billion of notes backed by non-conforming mortgage loans through lead manager Merrill Lynch & Co., and co-managers, Credit Suisse First Boston, JPMorgan, RBS Greenwich Capital.  

Also note a February 25,2004 release as American Stock Exchange® (Amex®) will launch trading in options on Thursday, February 26, 2004 on Saxon Capital, Inc. options with opening strike prices of 22 1/2 - 25 - 30 and position limits of 22,500 contracts. The options will trade on January expiration cycle with initial expirations in March, April, July and October. The specialist will be Kellogg Specialist Group, LLC. Saxon Capital, Inc. originates, securitizes and services non-conforming residential mortgage loans, which are primarily secured by first mortgages.

More Info: 5-year Chart from BigCharts.com

Additional Resources...  
Financials, StockTalk, News, Chart, SEC, Zacks Reports