Accredited Home shares drop following forecast of loss
8:20 PM EDT August 10, 2007
SAN FRANCISCO (MarketWatch) -- Stock in Accredited Home Lenders Holdings Inc. dropped sharply Friday evening after the mortgage company said that it expects to report a quarterly loss, and that it will postpone filing the related financial report with securities regulators.
Accredited Home shares ended the late-trading session down 42%, or $3.75, at $5.15. More than 1.3 million shares were traded, leaving the stock as the second-most traded of the evening, according to Nasdaq data.
The stock finished the regular session at $8.91, boosted by the company's announcement that it had received most of the regulatory approvals needed for its acquisition by an affiliate of private-equity group Lone Star.
But the share-price gains were wiped out in evening trades after the San Diego, Calif.-based company, in a filing with the Securities and Exchange Commission, said that it expects to swing to a second-quarter net loss of $40 million to $60 million due to the housing-market slump and a decline in margins.
Accredited Home also announced that it would delay the filing of its second-quarter report. Its first-quarter report is also due, and the company added that it's working to turn them both of them in to the SEC as soon as possible.
Accredited Home was a bright spot during Friday's roller-coaster session on Wall Street, as worries about the shaky credit market prompted further fund injections into banking systems by the Federal Reserve and the European Central Bank.
The Bank of Japan followed suit, joining the intervention Friday. See full story.
Cisco Systems Inc. , the evening's most actively traded stock, picked up a penny to close at $31.40. Shares of Microsoft Corp. were also busy, but slipped a nickel to $28.66. |
