Altisource Asset Management (NYSE: AAMC) is having one of those interesting times of it for a stock price. Down 12% perhaps yesterday, another 60% and change today. This is one of those bonfires of wealth we don’t like to see. Well, unless we were already short the stock of course.
However, it’s not wholly and entirely like that. There’s been a stock split and we don’t think the tickers are properly accounting for that. “Altisource Asset Management Board Approves2-for-1 Stock Split” and that took effect yesterday - after hours. So that’s 50% off the stock price as the company decided to do that split as a dividend policy.
But of course the performance has been worse than that. There were the results of course: “AAMC obtained a favorable ruling in its litigation with its preferred shareholder, Luxor, where the appeals court found that AAMC did not breach any contractual obligations.
In the Company’s lawsuit against Blackrock and PIMCO, a court-appointed Staff Master recommended that all of the Company’s tort and CICO damage claims may proceed in USVI court. AAMC second quarter operating results 2023 were similar to the first quarter of 2023.”
None of which really seems likely to produce a collapse in the stock price.
Altisource Asset Management stock price from Google Finance
Here’s what we think is making investors take fright: “Altisource Asset Management (NYSE:AAMC) said on Monday John P. de Jongh, Jr., its former chairman as well as former governor of the U.S. Virgin Islands, voluntarily resigned from the company's board to avoid distractions from the operations of the company. The decision was made "in light of today's litigation settlement by JPMorgan Chase & Co.," the company said. Earlier on Monday, JPMorgan (NYSE:JPM) agreed to pay $290M to settle a lawsuit filed against the company by sexual abuse victims of Jeffrey Epstein, the deceased financier. The private credit provider said it "has had no known personal, financial or business interactions with the late Jeffrey Epstein, his estate, or business entities." Two weeks ago, JPMorgan (JPM) alleged that de Jongh's wife aided Epstein's alleged criminal activity by helping him to avoid sex offender monitoring laws as well as throught other actions, NBC reported, citing statements JPM made as part of its defense in a civil suit that USVI brought against the bank late last year.”
There may well be no connection but people still might well take fright at the sight of a ravening pack of personal injury lawyers. Piercing the corporate veil has become something of a sport for them after all.
