Altisource Portfolio up another 3% as pressure builds on shorts

|About: Altisource Portfolio Sol... (ASPS)|By:, SA News Editor

Citing data from shortside.com, John Devaney - a sizable owner of Altisource Portfolio Solutions (ASPS +3.2%) who laid out the bull case on Seeking Alpha yesterday - says the average cost to borrow has now risen to over 100%.

Based on his consultation with other big holders of the stock, Devaney believes more than 44 Altisource investors have pulled shares from lending, resulting in more than a 3M share deficit for the shorts (average daily volume is about 500K).

Devaney is a fan and big holder of most of the former Ocwen/Bill Erbey complex, including Ocwen Financial (OCN -0.8%) and Altisource Residential (RESI -0.1%).

Along with Nationstar Mortgage (NSM -0.6%), Ocwen, says Devaney, is likely to be one the winners as the weak players - think PHH Corp (PHH -0.2%) and Walter Investment (WAC -4.3%) - unload assets.