Jim Cramer on loanDepot: "I'm Just Not There for That"

loanDepot, Inc. (NYSE:LDI) is one of the stocks in focus in Jim Cramer’s latest lightning round. A caller asked whether the stock, which they have been actively trading and has shown consistent gains, could be a strong long-term investment. Cramer remarked:

“I don’t understand why that stock, how that stock could be up this much. I mean, I know about the Fed, obviously everyone does, but it’s losing money. I’m not there for that one. I’m just not there for that. I can’t understand it.”

loanDepot, Inc. (NYSE:LDI) is a mortgage lender that uses digital technology to streamline the borrowing process, providing a range of lending and real estate services to support homeownership. On September 8, Citron Research posted a report named “The Hidden Gem of Housing Finance” arguing that the company’s real value lies in its $117 billion servicing portfolio, which generates steady fees, drives new originations through high recapture rates, and is worth about $5.50–$5.75 per share based on peer multiples. With mortgage rates easing and refinance demand building, Citron sees it positioned for significant upside and set a conservative valuation path above $6 per share and called it the next major housing finance re-rating.

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Disclosure: None. This article is originally published at Insider Monkey.