DJSP – This stock is hurting due to the recent foreclosure suspension that is the result of Robo Signing. Has sold off from a high of $3.75 on 10/05 and is now trading around $1.50. They have reduced staff in response to this, but we do think this is due for a bounce. Currently oversold on the Stochastic Indicator and the Ultimate Oscillator.
Add DJSP to your list of penny stocks to watch.
DJSP Enterprises, Inc., through its subsidiary, DAL Group, LLC, engages in providing non-legal services supporting residential real estate foreclosure, other related legal actions, and lender owned real estate (REO) services in the United States. The company involves in offering non-legal support in connection with residential foreclosures, bankruptcy, complex litigation, evictions, and the sale of REO properties by foreclosing lenders. It also prepares drafts of pleadings and documentation for legal matters. In addition, the company provides REO related services, including property inspection, valuation, broker assignments, and closings of purchases. Further, it performs title searches and examinations related to legal services; and assists in the location of defendants in foreclosure proceedings to enable service of legal process. The company was founded in 1994 and is based in Plantation, Florida.
PLANTATION, Fla., Oct. 14, 2010 (GLOBE NEWSWIRE) — DJSP Enterprises, Inc. (Nasdaq:DJSP – News) (Nasdaq:DJSPW – News) (Nasdaq:DJSPU – News) today announced that it has instituted staff reductions as a result of reduced file volumes. DJSP has reduced its staffing levels by approximately 10% and continues to evaluate additional measures in response to the reduction in file volumes. File referrals from DJSP’s principal client, The Law Offices of David J. Stern, P.A. have declined dramatically following the decision by numerous national mortgage lenders to suspend new and existing foreclosure cases pending a review of foreclosure documentation and procedures. The suspension of foreclosure cases has adversely impacted file volumes in each of DJSP’s foreclosure, title and REO liquidation divisions. There have also been reports in the press that a number of the clients of The Law Offices of David J. Stern, P.A. have or plan to suspend new referrals to the firm pending resolution of an investigation of the law firm announced by the Attorney General of the State of Florida this past August.
The Company also announced that its Audit Committee, comprised entirely of independent directors, has commenced an internal investigation with respect to compliance with applicable legal requirements of the Company’s mortgage foreclosure processing procedures. This internal investigation is in its initial stages. The Audit Committee has retained Greenberg Traurig, P.A. as independent counsel to assist the Audit Committee in the conduct of its investigation.
Pending the outcome of the investigation, the Company’s management intends to take appropriate steps to ensure that current mortgage foreclosure processing procedures are conducted in compliance with those requirements.
David J. Stern, Chairman and CEO commented, “Recent developments in the industry are unprecedented. We are closely monitoring developments in the industry and will take any necessary additional steps as dictated by these developments.”
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