Update on a Holding I'm not taking any action with this Alert, but I wanted to update subscribers on recent trading in model portfolio name Altisource Portfolio Solutions (ASPS:Nasdaq). Foreclosures in the U.S. housing market have been in the news for some time, but foreclosure documentation has been garnering most of the recent headlines. This is weighing on shares of Altisource because that's a big part of its business. In 2009, about 50% of the company's revenue came from mortgage services, much of it default-related.
Banks such as JPMorgan Chase and Bank of America have asked courts in 23 states to halt foreclosure proceedings while they get their act together. Recent published reports suggest that banks, in some cases, did not followed proper foreclosure procedures and may have filed misleading documents.
Altisource stock has fallen about 11% in the prior three trading sessions as investors fret over what impact the recent news will have on its business going forward.
From a technical perspective, the stock closed slightly below its 50-day moving average on Tuesday. This is an area where I would expect a strong stock to ultimately find support so I'll monitor Altisource closely over the next few days.
Shares closed Tuesday at$27.58. My average cost basis is $27.65. This holding currently makes up 3.2% of the model portfolio.