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There are a number of reasons which might be plausible.

1. The selling was overdone to begin with -- FAF trades at a discounted P/E to its peer group.

2. Cost-cutting measures including centralization of information systems and title processing, layoffs and reforming some telecom contracts should produce better bottom-line results.

3. Seasonality in title orders. Apparently the first quarter is usually the worst in the year (according to a Merrill Lynch report I'm reading, anyway).

4. The perception that Greenspan is probably done with rate hikes for a while, giving this highly interest rate sensitive company a breather.

Will FAF continue to rise again? It will probably be trading in fits and starts until rates level out or begin to decline. It still hasn't cut down its reliance on real estate-driven revenue, despite some of the comments the company leadership has said. However, they are getting more exposure to the public and to Wall Street (see the articles in Forbes, Information Week, et al) and, like any other product, that can't hurt interest in the stock.
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