Value Investing Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: E_K_S who wrote (28111)	9/17/2007 10:57:53 PM
From: pcyhuang	Read Replies (1) of 78743

>Novastar Fin will not distribute REIT dividend...NFI will file a consolidated tax return for the 2006 tax year today, in a timely manner, as a general C Corporation rather than as a REIT. EKS: Payment of a dividend on the common was never in the Company's best interests. Now it will pay a little interest to the IRS and move forward with its capital structure intact. Yes, the Company will have to book a large provision for 2006 income taxes in the third quarter of 2007 since the liability was not previously recorded under the REIT structure. But not to worry, because that 2006 tax liability will be offset dollar-for-dollar by the benefit of carrying back the 2007 NOL. I believe there's no reason that the 2007 tax benefit cannot also be recorded in the tirrd quarter since they should have a pretty good handle on the 2007 NOL by now. Since NFI is retroactively a "C" corp., the NFI charter provision preventing anyone from acquiring over 10% of the company is no longer valid. The value of the cash flow from the portfolio, after deducting taxes, judgements, and other writeoffs should still exceed $25 per share, and MM/J does not have enough shares to block a takeover. pcyhuang

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next