NovaStar Financial Inc. (NFI)

[paul from jersey]

What do you think prince, could we see a double here in the next few weeks?

[Prince_among_thieves]

Laughing all the way to the bank
I bought just shy of 50k shares low mid 7s, and dec calls.
Im with stupid<<<<<

LOL
enjoy

[Prince_among_thieves]

Not a bad start Paulie!

[paul from jersey]

Closed at 8.17. Looks good for tomorrow too. I'll ride it back to 10.

[tradin4fun]

Thank good-ness I got some this morning, other stocks been killing me.

[paul from jersey]

8.05!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[island01]

Stupid yourself !!!

You have no sense of humor.

[paul from jersey]

$8 coming!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[paul from jersey]

New HOD 7.86!!! GO GO GO!!!

[paul from jersey]

Yeah, this is not going to $10 in 5 minutes, the MM's are going to take it up slowly. They know the shorts have to start covering because some of them are the shorters!!

[Prince_among_thieves]

Not moving your crazy its fine, if you looking to day trade go home, this is swing material.

stupid scalpers never learn

[paul from jersey]

Now it's moving, a little. LOL 7.70

[island01]

no more pumpers?

[island01]

Not moving

[Prince_among_thieves]

7.60 before open, should be a great ride, in anticipation of next week, now that the news is being digested and shorts will have to buy the entire float to cover.

[big blue boy]

looks like the cat is out of the baag and we gap to at least $7.60. Fasten your seatbelts!

[paul from jersey]

This stock was $280 in Early 2004!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[Prince_among_thieves]

This thing is going to go cuckoo....
$$$$$$$$$$$$$$$$$$$$

[paul from jersey]

I'll be in it at the open. I hope there's not too big of a gap up.LOL

[Prince_among_thieves]

Stock was over 100 not too long ago, this is going to be one hell of a bounce!

[Prince_among_thieves]

This has the most upward potential from all my scans! Expect nice squeeze before Fed rate cut!

[big blue boy]

check out #99 been waiting for imminent buyin for a few weeks, ready to burst with the news plus current technical uptrend

http://www.buyins.net/tools/short_list.php?dys=%3E12

[big blue boy]

WOW! 23 million shares short?!!?!!!!

two days to cover?!?!?!?!

http://www.shortsqueeze.com/index.php?symbol=nfi&submit=Enter

[Prince_among_thieves]

Lenders ease requirements on NovaStar
Wednesday September 12, 6:41 pm ET

Wachovia Bank National Association and its affiliates loosened certain lending requirements for NovaStar Financial Inc.

In a filing after the market closed on Wednesday, Kansas City-based NovaStar (NYSE: NFI - News) said that Wachovia, NovaStar's primary lender, and its affiliates on Sept. 7 eliminated the requirement for a certain ratio of NovaStar's adjusted tangible net worth to equity and cut the amount of net worth NovaStar must maintain by 71 percent, to $150 million from $517 million.

http://biz.yahoo.com/bizj/070912/1519586.html?.v=1


Huge bye bye shorty!!!

[Prince_among_thieves]

Talk about upside Potential here, cant wait to see the short bounce! Yahoo has 236% short interest, now talk about a failure to deliver problem, with news today i wouldnt be surpised too see this back up in the 20s. At 7.41 in ah now

Wow!!!!!!!!!

[Prince_among_thieves]

Shorts are screwed See the news today, I have a feeling this is on its way over 10 in no time.

[up-down]

NFI conference call slide show from this morning...

Here's slide 15...



http://app.quotemedia.com/quotetools/showFiling.go?name=NOVASTAR%20FINANCIAL%20INC:%208-K,%20Sub-Doc...

[up-down]

Friedman says NFI headed to zero

NEW YORK, August 6 (dailywallstreet.com) - Analysts at Friedman Billings reiterate their "underperform" rating on NovaStar Financial Inc (ticker: NFI). The target price has been reduced from $4.50 to $0.

Cramer is saying every one who is taking gas on the CDO's riddled with crappy subprime loans are shorting all the mortgage and building companies as a hedge.

[up-down]

$54.5 million loss for Q2

NovaStar Financial Announces Second-Quarter 2007 Results and Second Quarter Investor Conference Call

KANSAS CITY, Mo., Aug. 9 /PRNewswire-FirstCall/ -- NovaStar Financial, Inc. (NYSE: NFI), a residential lender and mortgage portfolio manager, today reported second-quarter 2007 results.

For the quarter ended June 30, 2007, NovaStar reported a net loss available to common shareholders of $54.5 million, or $5.84 per fully diluted common share. Second-quarter 2006 net income available to common shareholders was $33.1 million, or $3.97 per fully diluted common share. Per share data reflects a one-for-four reverse split which occurred on July 27, 2007.

On July 16, 2007, NovaStar announced that it had completed the previously announced formal process of exploring strategic alternatives, and detailed a comprehensive plan to strengthen the company's balance sheet. Affiliates of MassMutual Capital Partners, along with funds managed by Jefferies Capital Partners, purchased $48.8 million of 9.00% Series D-1 Mandatory Convertible Preferred Stock, and committed, subject to certain conditions, to purchase up to $101.2 million of any unsubscribed shares of an upcoming shareholder rights offering for a similar series of convertible preferred stock. Upon completion, the transactions would raise a total of $150 million in equity for NovaStar.

NovaStar recorded a number of significant non-cash items, presented as pre-tax, which effected net loss and earnings per share in the second quarter:


(In thousands of dollars)
Pre-Tax
Provision for credit losses (73,254)
Valuation adjustment on mortgage loans - HFS (4,363)
Fair value adjustments (16,741)
Impairment on mortgage securities - AFS (22,569)
Total (116,927)

Dividends

NovaStar previously announced its intent to pay the required dividend with respect to 2006 REIT taxable income by issuing Series E Convertible Preferred Stock. The company is currently evaluating its options in structuring the Series E Convertible Preferred Stock to meet 2006 REIT dividend requirements.

In addition, the Board declared a quarterly dividend of $.55625 per share on NovaStar's 8.90% Class C Cumulative Redeemable Preferred Stock, payable October 1, 2007, to holders of record as of September 5, 2007.

Portfolio Management

Loans under management were $15.5 billion at June 30, 2007, down 3 percent from a year earlier. Return on assets in the portfolio was (0.88) percent in the second quarter, compared with 1.36 percent a year earlier.

During the second quarter, NovaStar securitized $1.4 billion in nonconforming loans (the 2007-2 transaction), this securitization was treated as a sale for financial reporting purposes and as a sale for tax purposes.

'The subprime securitization market continues to be illiquid. Although we believe the quality of collateral in 2007-2 was markedly better than that in 2007-1, the economics of the transaction did not improve substantially. Over time, we continue to believe the secondary markets will become more rational given better collateral characteristics, although there can be no assurance of this and a sustained recovery will depend on the credit performance of loans, as well as other economic and company-specific factors,' said Mike Bamburg, Executive Vice President and Chief Investment Officer.

Mortgage Banking

Second quarter loan production was $774 million, down 73 percent from the $2.8 billion reported in the year-earlier period. During the quarter, NovaStar continued to utilize tighter underwriting guidelines and exception policies, enhanced appraisal reviews, and its proprietary NovaStar Risk Assessment Score (NRAS) for evaluating credit risk in loan applications.

Wholesale production in the second quarter represented 61 percent of loan originations. Retail lending grew to 39 percent of loan originations, aided by the launch of new retail branches in December of 2006. Correspondent lending was negligible, as the company reduced its correspondent efforts.

Subsequent to the end of the second quarter, NovaStar further adjusted its pricing and underwriting guidelines in response to deterioration in secondary market conditions. As a result, the company expects production volume to slow substantially in the third quarter. NovaStar further commented that retail production should be the dominate source of third quarter originations.

'Due to poor liquidity and increased risk-aversion in the secondary market for loans, NovaStar and other nonconforming lenders, have taken steps to make our originations more marketable. We have tightened underwriting guidelines and raised our rate structure, which should further restrict the number of borrowers eligible to qualify for a mortgage loan. While we expect current secondary market disruptions will abate over time, we believe our third quarter production volume will be substantially lower than the $774 million posted in the second quarter. Given lower production volume, we also expect the cost to fund a loan to rise well above the second quarter level of 3.20%,' said Lance Anderson, President and Chief Operating Officer.

Liquidity and Borrowing Capacity

As of June 30, 2007, NovaStar had borrowing capacity of $4.0 billion. However, the company has no intent to use $2.0 billion of this capacity in the near future and the facilities providing this $2.0 billion of capacity will expire in the last half of 2007. Cash and available liquidity totaled $157 million at the end of the second quarter.

Subsequent to the end of the second quarter, NovaStar issued 2.1 million shares of Series D-1 Preferred Stock to MassMutual Capital and Jefferies Capital Partners for $48.8 million in cash.

Also from June 30, 2007 through August 8, 2007, NovaStar has been subject to margin calls of approximately $76.5 million due to the extremely volatile and less liquid secondary market, which has adversely affected the value of its mortgage securities and mortgage loans.

[Bruce A Thompson]

staying out till after earnings.

[up-down]

NFI is holding the bounce :)

are people watching LUM?

Luminent Mortgage Capital was halted as it fell from $7 to $4 and opened up the next day (yesterday)at .45 cents, now $1.40

http://investorshub.advfn.com/boards/board.asp?board_id=9991

[up-down]

NovaStar to Resume Lending

By TSC Staff
8/6/2007 1:43 PM EDT

NovaStar (NFI - Cramer's Take - Stockpickr - Rating) bounced off its early-day lows after the struggling mortgage company said it expects to resume funding loans tomorrow.

The news comes just days after Kansas City, Mo.-based NovaStar told mortgage brokers it would suspend some loan production for a few days to monitor the dynamics in the secondary market for mortgage-backed securities. A plunge in the value of those securities has driven a number of big lenders out of business in recent weeks. On Monday, American Home Mortgage (AHM - Cramer's Take - Stockpickr - Rating) filed for Chapter 11 bankruptcy protection.
"Based on a re-evaluation of current conditions in the secondary market," NovaStar said Monday afternoon, "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."

Also hit hard Monday were shares of Luminent (LUM - Cramer's Take - Stockpickr - Rating), a mortgage player that last week reaffirmed it would issue a quarterly dividend even as American Home was suspending its.

On Monday, NovaStar fell 98 cents to $5.42 after earlier hitting a 52-week low of $4.17. Luminent was halted after falling $1.95 to a 52-week low of $4.38.

http://www.thestreet.com/_yahoo/newsanalysis/banking/10372629.html?cm_ven=YAHOO&cm_cat=FREE&...

[up-down]

NFI gapdown to 4.25 filled, printing 6.50+

must be shorts strpping all over one another to cash in, lol

[Bruce A Thompson]

Parsing the iPhone rumors: When will the new ones come?

AppleiphoneThere's no shortage of rumor out there about when Apple (AAPL) will release new iPhones, and what they'll look like. Even though the phone/iPod/Internet device came out just five weeks ago to rave reviews, overeager investors have been trading on seemingly opposing rumors that the phone is either

(a) A disappointment, with production cuts coming, or

(b) A hit, with retooled models coming.

My own bet is that both are overreactions. Here's why:

Apple has established certain patterns for its product roll-outs, and has proven its methods work through the continued success of the iPod. Its methods are smart in that they keep Apple's profit margins high, and they bring forth new products only when there's profit to be made.

Based on that track record, I think it's most likely that there won't be a noticeably different iPhone design or a dramatically lower price in the near future. Why?

* Forrester: iPhone will kill the old mobile Web

1. Apple doesn't like undercutting itself. On its earnings call last month, Apple noted that the iPhone is selling well, customer satisfaction is high, and buyers in the first few days tended to buy the 8-gigabyte version ($600) more than the 4-gigabyte version ($500). When you have one of the hottest consumer electronics products on the planet and you're heading into the lucrative second half of the year, it's not a time to confuse buyers by muddling your product lineup. Apple knows this.

2. Component supplies are too tight. Apple also said during its earnings call that it expects its profit margins to suffer this quarter because of the rising cost of parts it uses in its products. One of the clear culprits is NAND flash memory, which Apple uses for storage in its iPods and iPhones. (Flash memory maker SanDisk (SNDK) confirmed during its earnings call that flash prices are firming up.) If Apple were to release new, cheaper iPhones in an environment where flash is getting pricier, it would be a double-whammy to Apple's profit margins. And again, when early buyers were snapping up the more expensive iPhone anyway, that wouldn't make much sense.

3. The time for a pre-Christmas update is September/October. I know all the hype makes it seem like the iPhone has been out for six months, but the truth is, it's been around for less than 40 days. That's practically nothing. If Apple wanted to have enough new iPhone models in the channel for the holiday season, it would have to introduce them next month, or in October at the latest. Apple just accomplished the impressive feat of stocking the channel with enough iPhones for a record-breaking launch, and it would have to put itself through a logistical nightmare all over again to refresh the line this fast. Not likely.

There is one possibility I can see for a minor iPhone update in the near-term: Apple could kill off the 4GB model and roll out a 20GB iPhone to stoke sales. In that scenario, it could drop the price of the 8GB iPhone by $50 to $550, and charge $650 for the 20GB phone. That would preserve Apple's margins while also goosing things a little bit – and it would fit the pattern Apple has established with its iPod updates.

http://blogs.business2.com/utilitybelt/2007/08/parsing-the-iph.html

[stolibox]

holy crap what a turd, like a pinkie

[Tina]

NovaStar Financial Inc has announced a 1-4 split effective 7/27/07.

[shortsinthesand]

I am finding this to be a great swing trading stock. I have almost made up what I have lost from my original purchase at 22.

Pretty soon I will be back into profit here...

-shorts

[HAK41]

Bruce......that sounds like a good price to me, or maybe even higher in another 12 months. Sort of grew real fond of around the $ 45 price in the last go 'round.
Think these Kansas financial wizards are doing just fine being able to securitize their mortgages as they go and survive this sub prime media negativity. Also hope they continue on their own without any greedy claws entering the picture by some of the Eastern Financial Institutions.

[Bruce A Thompson]

Don't know.

I am not interested in selling for anything less than $30+++++

[Allatthetouch]

Article on the buyout rumor here: http://www.nobosh.com/Article/NovaStar-Stock-Jumps-on-Buyout-Speculation-/627/

Who would buy them? And why?

[Bruce A Thompson]

Oh Yeah

[HAK41]

Bruce,
This girl is doing one fine polka today....nice volume too.

[HAK41]

GM Bruce.....looks like there are at least two of us diehards who seem to think this old girl has one more polka left in her. Good Luck !

[Bruce A Thompson]

Dollar costed in
'
22K shares under $7

BT

[HAK41]

Think it might be time to wake things back up a bit on this board. This puppy is up 27.4% since 5/21/07 when I picked up a fistful at $ 6.05 or did you all go away and give up on the skeleton. Despite the preordained ( by the news media ) death of the subprime market, apparently there is still some life in this neck of the woods.

[jzman22]

Nice buy Bruce, any other gems?

Posted by: Bruce A Thompson
In reply to: None Date:1/10/2007 12:14:37 PM
Post #of 38

Buying NFI here.

Pulled the margin trigger. I intend to ladder in to double my holdings.

BT

[jzman22]

NovaStar details executive bonuses
Friday March 16, 1:15 pm ET


NovaStar Financial Inc. gave Chairman and CEO Scott Hartman a $474,534 bonus for 2006, 74 percent of his base salary for the year.
In a filing Thursday with the Securities and Exchange Commission, the Kansas City-based subprime mortgage lender (NYSE: NFI - News) listed bonuses for the following other executives:

ADVERTISEMENT


CFO Gregory Metz -- $167,888, 66 percent of base salary President and COO W. Lance Anderson -- $474,534, 74 percent of base salary Chief Investment Officer Michael Bamburg -- $300,000, 76 percent of base salary NovaStar Mortgage Inc. President and CEO David Pazgan, $300,000, 76 percent of base salary

Bonuses were targeted at 100 percent of base salaries, and the executives had the opportunity to earn as much as 200 percent of their base salaries as bonuses, NovaStar Financial said.
Published March 16, 2007 by the Kansas City Business

[jzman22]

NovaStar execs get big perk before cuts
Top five executives receive 100% of the restricted shares, currently worth about $473,000, providing they stay with the subprime lender for five years.
March 19 2007: 11:44 AM EDT


NEW YORK (Reuters) -- Two days before NovaStar Financial Inc. said it would cut 17 percent of its work force, the battered subprime lender's top five executives received restricted stock now worth about $1.6 million.

The 350 job cuts, announced Friday evening, lifted NovaStar shares as much as 16 percent Monday morning on the New York Stock Exchange before they shed some of that gain.

Video More video


The subprime mortgage market is heading for a meltdown with some major lenders defaulting on current financial agreements. CNN's Gerri Willis reports. (March 10)
Play video



Shares of NovaStar (up $0.18 to $6.08, Charts) rose 5 percent during morning trading in New York.

NovaStar shares are off about 65 percent since the company's warning last month that it might not generate taxable income for several years.

On March 14, NovaStar Chairman and Chief Executive Scott Hartman and President Lance Anderson each received 76,882 shares of restricted stock, regulatory filings show. The restricted share grants were worth about $473,000 each early Monday as NovaStar's stock traded at $6.15, up 4 percent from Friday's close.

The executives will receive 100 percent of the restricted shares if they stay with the Kansas City, Missouri-based company for five years, according to filings with the Securities and Exchange Commission. But they could receive nothing if they quit before that term.

NovaStar did not return telephone calls seeking comment.

NovaStar Chief Financial Officer Gregory Metz, Chief Investment Officer Michael Bamburg and the head of NovaStar's mortgage operations, David Pazgan, also received restricted stock.

In addition, NovaStar's top five executives received a total of 453,413 options to buy company stock. Each option carries an exercise price of $4.18 a share, priced at just above when NovaStar shares scraped bottom last week, U.S. regulatory filings show.

NovaStar shares Monday were trading about 47 percent higher than the exercise price of the stock option grants.

Hartman and Anderson, co-founders of NovaStar, received the largest grants, 131,708 options each, SEC filings show. The options vest over the next four years.

Accredited rallies on $2.7B loan move

Countrywide stops no-money-down lending

[jzman22]

Law Offices of Howard G. Smith Announces 35 Days Remaining to Move to Be a Lead Plaintiff in the Shareholder Lawsuit Against NovaStar Financial, Inc. -- NFI
Tuesday March 20, 5:29 pm ET


BENSALEM, Pa., March 20, 2007 (PRIME NEWSWIRE) -- Law Offices of Howard G. Smith announces an April 24, 2007, deadline to move to be a lead plaintiff in the securities class action lawsuit filed on behalf of shareholders who purchased the common stock of NovaStar Financial, Inc. (``NovaStar'' or the ``Company'') (NYSE:NFI - News) between May 4, 2006 and February 20, 2007, inclusive (the ``Class Period''). The shareholder lawsuit is pending in the United States District Court for the Western District of Missouri.
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The Complaint alleges that defendants violated federal securities laws by issuing material misrepresentations to the market concerning the Company's business and financial performance, thereby artificially inflating the price of NovaStar securities.

No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased NovaStar common stock between May 4, 2006 and February 20, 2007, you have certain rights, and have 35 days remaining -- until April 24, 2007 -- in which to move for Lead Plaintiff status. To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at [phone], Toll-Free at [phone], by email to [e-mail] or visit our website at http://www.howardsmithlaw.com.

[GotOptions?]

Nice Premarket on NFI fluctuating but 7.17 x 7.20 is not bad.