NFI

[BigSully1]

So actually NFI is down 20% for the day? Is that right? New low?

AHM halted trading all day pending news. (very bad news?)

These mortgage lenders look to be very very risky, especially subprimes. I'll just watch.

[setravis]

So actually NFI is down 20% for the day? Is that right? New low?

AHM halted trading all day pending news. (very bad news?)

These mortgage lenders look to be very very risky, especially subprimes. I'll just watch.

Yes, NFI down -20.38% in today's trading closed at $12.93
and down another -1.01% in after hours to $12.80
So will I Sully, just watch !.......

Today's closing chart.......

[stout7735]

I think the majority of their income is by selling un-conventional mortgages on owner occupied homes which they repackage and sell to investors in the form of bonds...The reason the stock price  is  declining is increased risk due to  increasing interest  rates and anticipated high repo rate on upside down loans...

However,if the stock price continues to decline,NFI will become irresistable  because its dividend  will outweigh risks...A buyer must be optimistic on the U.S. economy...

I made a short term profit a couple months ago and got out...Like I said in 2005,an investor must be optimistic about the economy to invest in NFI...That said,I invested today in SKF...

[Se7en]

Wowww, what happened to NFI? 
What's the story behind it, anyone?

[godofstock]

NFI will meet its next buddy AMH pretty soon............

[godofstock]

Wowww, what happened to NFI?   
What's the story behind it, anyone?

you have 120 rating and u dont know what the heck happened to NFI? are you joking me?

the guy is right, so many dumbass on these message board......

[Se7en]

I'm not following it smartass, go back to your yahoo forums with you idiot remarks!

[setravis]

Wowww, what happened to NFI?   
What's the story behind it, anyone?

you have 120 rating and u dont know what the heck happened to NFI? are you joking me?

the guy is right, so many dumbass on these message board......

Excuse me ?
Fellow trader this is not the Yahoo message boards !
Clean up your train of thought (your mouth) when posting a reply to a fellow member here at 3SOF.
This will be your final and only warning. Understand?

Now I see why your Rating is @ -11

[la-onda]

just fyi:
NovaStar Financial, Inc., Issues Statement on Current Mortgage Market Developments
Monday , August 06, 2007 13:32ET

KANSAS CITY, Mo., Aug. 6 /PRNewswire-FirstCall/ -- NovaStar Financial, Inc. (NYSE: NFI), a residential mortgage lender and portfolio investor, today issued the following statement updating a communication issued to mortgage brokers on Friday August 3:

    As other lenders in the industry did last week, NovaStar temporarily
    suspended, until Tuesday August 7, issuing commitments for new loans in
    the wholesale channel of our business due to disruptions in the secondary
    market for loans.

    Based on a re-evaluation of current conditions in the secondary market,
    NovaStar is adjusting its pricing and guidelines and expects to return to
    committing on new loans in the wholesale channel and funding those loans,
    effective Tuesday August 7.

    Meanwhile, NovaStar has continued to honor all existing commitments and
    fund all loans that have already been approved and committed for closing.
    Our retail channel, which deals directly with homeowners, has continued to
    make loans, using guidelines that are evolving to meet changing needs of
    the secondary market.

    NovaStar's business model is to focus on what is best for our shareholders
    over the long term. We believe we can best serve the interests of our
    shareholders -- and the mortgage market -- by making prudent economic
    decisions on loans we originate in the current market environment.

&

NovaStar halts funding certain loans
Saturday , August 04, 2007 05:20ET

Dan Margolies

Aug 04, 2007 (The Kansas City Star - McClatchy-Tribune Information Services via COMTEX) -- Troubled subprime lender NovaStar Financial has suspended funding some loans as rapidly worsening conditions in the credit market continue to batter the mortgage lending industry.

The Kansas City-based company sent an e-mail to mortgage brokers Friday attributing the move to "severe dislocation in the secondary market."

The suspension affects residential mortgage loans made by NovaStar's wholesale unit, which operates through a national network of loan brokers. The e-mail said the company would re-evaluate the suspension, which applies to loan applications that have not been locked in, on Tuesday.

"We apologize for short notice and will be reviewing market conditions and updating our policy on a daily basis," the e-mail stated.

The message was posted Friday afternoon on several mortgage-related Web sites. Richard Johnson, a company spokesman, confirmed its authenticity but otherwise declined to comment.

Scott Hartman, NovaStar's chairman and chief executive, and Lance Anderson, the company's president and chief operating officer, did not return phone calls Friday.

NovaStar shares, which have been under pressure for months, were pounded again Friday, falling 79 cents, or 11 percent, to $6.40. Shares continued to fall in volatile after-market trading, declining an additional 13 percent.

The loan suspension came the day after American Home Mortgage Investment of Melville, N.Y., another troubled mortgage lender, announced it was closing all but its thrift and servicing businesses and laying off 6,250 of its 7,000 employees.

"Conditions in both the secondary mortgage market as well as the national real estate market have deteriorated to the point that we have no realistic alternative," Michael Strauss, American Home Mortgage's chief executive, said in a written statement.

Another mortgage lender, Accredited Home Lenders of San Diego, said Thursday that it might be forced to close if the market for mortgage-backed securities continued to decline.

The subprime market, which focuses on credit-challenged borrowers, has staggered under the weight of rising defaults and delinquencies. As the housing boom cooled and interest rates rose, loan defaults spiked, triggering an industrywide meltdown.

In March, NovaStar announced a 17 percent reduction of its 2,000-strong work force, including 50 employees at its Ward Parkway headquarters and an additional 300 at centers in California and Ohio.

In a bid to shore up its finances, NovaStar last month announced a $150 million equity infusion from the private equity units of Massachusetts Mutual Life Insurance Co. and Jefferies Group Inc.

At the time, NovaStar said the recapitalization would end its exploration of strategic alternatives, including a possible sale.

At least one Wall Street analyst, however, has suggested that the $150 million infusion may not be enough to ensure the company's survival.
NovaStar's wholesale loans make up more than two-thirds of its business. The company also operates 19 retail branches that deal directly with borrowers. Its decision to suspend funding new wholesale loans came after investors refused to fund those loans at acceptable prices.
If, as some analysts expect, the housing market continues its slide and investors' wariness persists, NovaStar may face some hard choices, including whether to wait out the market or to curtail, or even shut down, its wholesale operation.

&

NovaStar Financial Clarifies Information Regarding Authorized, Issued and Outstanding Shares
Thursday , August 02, 2007 16:00ET

KANSAS CITY, Mo., Aug. 2 /PRNewswire-FirstCall/ -- NovaStar Financial, Inc. (NYSE: NFI), a residential lender and mortgage portfolio manager, desires to clarify the information it reported on July 27, 2007, with respect to its authorized shares of capital stock and its issued and outstanding shares of capital stock after the one-for-four reverse stock split of its common stock, par value $0.01 per share ("Common Stock"), which occurred on that date. After the reverse stock split, it was authorized to issue 50,000,000 shares of capital stock consisting of: 38,763,000 shares of Common Stock, 2,990,000 shares of 8.90% Series C Cumulative Redeemable Preferred Stock, par value $0.01 per share ("Series C Preferred Stock"), 2,100,000 shares of 9.00% Series D1 Mandatory Convertible Preferred Stock, par value $0.01 per share (initially convertible into 1,875,000 shares of Common Stock, subject to certain adjustments) (the "Series D1 Preferred Stock"), and 6,147,000 shares of 9.00% Series D2 Mandatory Convertible Preferred Stock, par value $0.01 per share (initially convertible into 5,488,393 shares of Common Stock, subject to certain adjustments) (the "Series D2 Preferred Stock"). After the reverse stock split, it had the following shares issued and outstanding: 9,469,910 shares of Common Stock, 2,990,000 shares of Series C Preferred Stock, and 2,100,000 shares of Series D1 Preferred Stock. At this time, none of the Series D2 Preferred Stock is outstanding.

ugly chart:

[setravis]

AP
Sector Glance: Mortgage Lenders
Thursday September 13, 4:19 pm ET 
Shares of Mortgage Lenders Climb on Countrywide's Access to $12 Billion


NEW YORK (AP) -- Shares of mortgage lenders rose Thursday after the nation's biggest lender said it gained access to much-needed cash.
Countrywide Financial Corp., which is based in Calabasas, Calif., said it secured access to $12 billion in new credit lines.

While the company did not say who is providing the loan or how much it will cost, the news offered some relief to people worried about whether Countrywide has enough cash.

Countrywide's stock climbed $2.31, or 13.9 percent, to $18.93.

Cash is the lifeblood of the struggling mortgage industry. More than 50 lenders have gone bankrupt this year, mainly because they could not raise money after their financial backers cut them off.

In order to free up cash this summer, Countrywide has sold a chunk of itself to Bank of America Corp., arranged to borrow from banks and announced plans to trim its work force by as much as a fifth.

Shares of IndyMac Bancorp rose $1.05, or 5 percent, to $22.24.

Shares of Washington Mutual Inc. rose 33 cents to $35.56.

Shares of Thornburg Mortgage Inc. rose 24 cents to $13.58.

Shares of Accredited Home Lenders Holding Co. rose 18 cents to $10.78.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>



Interesting Spec play..Could see a big bounce along with the rest of the sector..

Technicals
Close Above the 13-day MA
Percentage Gainer

Last Price Quote is:
8.26%above 13-day MA
-37.71%below 50-day MA
RS Rating: 2 

Fundamentals
Key Data:
Market Cap (M): $64.48 
P/E Ratio: 0.88 
PEG Ratio: N/A 
Next Earnings: 11/06/2007
Last Analyst Rating: Sell

[BigSully1]

Bankruptcy looks like more of a probability for NFI now.

[sanmiguelarcangel]

Bankruptcy looks like more of a probability for NFI now.

$600 million loss! Yes, bankruptcy seems very possible now.

[lucror]

Any particular reason why this would be up so much AFs? The news just seems like it is delaying the inevitable, why buy? Maybe there is something I'm missing. The date has only been extended until Dec 7.

http://biz.yahoo.com/ap/071205/novastar_financial_waiver.html?.v=1

Thanks