Speculative Options Plays

[CoolHandLucas]

NFI - Large Cap News: Daily Market Alert for Novastar Financial Inc.
Friday 03/23/2007 2:37 PM ET - M2
NovaStar Financial seeks to bring a little cosmic harmony to its subprime clientele. Through subsidiary NovaStar Mortgage, the real estate investment trust (REIT) originates primarily single-family, nonconforming loans via a network of wholesale loan brokers and mortgage lenders throughout the country. (Noncomforming loans typically bring in higher origination fees and interest rates and are less subject to general interest rate levels.) The REIT handles the loan process from start to finish: Following origination, it securitizes and sells the loans and maintains contact with borrowers. NovaStar Home Mortgage brokers nonconforming and conforming loans for investors including NovaStar Mortgage.

Shares were down 5% subprime mortgage crisis may leave few independent players.

BellwetherReport.com is a leading online research firm for international investors looking to get an edge over their portfolio. Investors seeking the most up to date information on Novastar Financial Inc. are invited to sign up for a free complimentary subscription to www.bellwetherreport.com. No credit card needed!

The subprime mortgage crisis will likely decimate the crop of specialist companies that sprouted during the boom years of the sector, analysts said this week.

Companies like New Century Financial , NovaStar Financial and Accredited Home Lenders will probably be acquired or will shut down.

Bigger, more diversified mortgage banks such as Wells Fargo , Countrywide Financial and Washington Mutual will take their place, along with investment banks including Bear Stearns, Morgan Stanley and Lehman Brothers , the analysts said.

Subprime mortgages are sold to home buyers with lower credit scores. Surging house prices and record low interest rates earlier this decade, coupled with investors' growing need for high yielding assets fueled a boom.

Last year, subprime mortgages were a $600 billion business that accounted for roughly a fifth of all home loans, according to industry publisher Inside Mortgage Finance.

But as borrowing costs climbed and the housing market cooled, the subprime sector spiraled into a crisis.

Several lenders in the business have gone bankrupt, including Ownit Mortgage Solutions, ResMAE Mortgage and Mortgage Lenders Network USA.

Others, such as Equifirst and ECC Capital's mortgage unit, have been sold and more firms are on the block.

"It's unlikely that any of these mono-line subprime lenders will be around on a stand-alone basis in a year," Robert Napoli, an analyst at Piper Jaffray, said. "Weak players will disappear and the originators that are left will be backed by much stronger players with more capital." Big companies that offer a wide range of mortgages, such as Citigroup , Wells Fargo, Washington Mutual and Countrywide, will be left to dominate the subprime sector, along with investment banks like Bear, Napoli predicted.

The shakeout is well underway. Of the top 25 subprime mortgage originators last year, only three -- New Century, Accredited and NovaStar -- remain independent specialists. At least 10 have gone bankrupt, been sold or are for sale. Most of the rest are already owned by larger companies.

More information on Novastar Financial Inc. available in the members section of www.BellwetherReport.com.

To review research on Novastar Financial Inc. as well as many more exciting articles we encourage you to visit www.bellwetherreport.com. You can find these reports under the "Today's Articles" section. No credit Card Needed!!

The Bellwether Report will continue to research the small cap markets to bring you exciting opportunities!! If you are interested in receiving more information on these small cap opportunities and other features of our site, feel free to sign up for a complimentary subscription to the #1 online investment tool www.bellwetherreport.com.

Companies looking to advertise with Bellwether Report should email [e-mail] with the subject line (Advertising).

Information has been gathered from sources such as www.Hoovers.com, www.yahoo.com, www.associatedpress.com, www.marketwire.com, www.businesswire.com and other public resources.

All material herein was prepared by the Bellwetherreport.com, (Bellwether) based upon information believed to be reliable. The information contained herein is not guaranteed by Bellwether to be accurate, and should not be considered to be all-inclusive. The companies that are discussed in this opinion have not approved the statements made in this opinion. This opinion contains forward-looking statements that involve risks and uncertainties. This material is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. Bellwether is not a licensed broker, broker dealer, market maker, investment banker, investment advisor, analyst or underwriter. Please consult a broker before purchasing or selling any securities viewed on or mentioned herein. Bellwether may receive compensation in cash or shares from independent third parties or from the companies mentioned.

Bellwether's affiliates, officers, directors and employees may also have bought or may buy the shares discussed in this opinion and may profit in the event those shares rise in value.

Bellwether will not advise as to when it decides to sell and does not and will not offer any opinion as to when others should sell; each investor must make that decision based on his or her judgment of the market.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a companies' annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission.

You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and Bellwether undertakes no obligation to update such statements.

M2 Communications Ltd disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to [e-mail].