Wow ! -- "We reiterate our underperform rating and $0 price target ..." (this is regarding NFI)
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Novastar Financial I NovaStar shares hit all-time intraday low after 3Q financials
BOSTON (Thomson Financial) - Shares of NovaStar Financial Inc. plummeted
Thursday after the Kansas City, Mo.-based residential loans originator said it
swung to a third-quarter net loss of $598 million, or $64.05 a share, from net
income of $25.3 million, or $2.91 a share, in the same period a year earlier.
The company said late Wednesday that the loss from continuing operations
totaled $43.99 a share, a steeper decline than that forecast by the mean
estimate of analysts polled by Thomson Financial for a loss of $8.33 a share.
Shares fell 56% to an all-time low of $2.02 on volume of 1.4 million shares.
The full-day average volume over the past 30 days is 850,000 shares. The stock
has lost 98% since the end of 2006.
In reaction to the results, Friedman, Billings, Ramsey & Co. said, "We
reiterate our underperform rating and $0 price target, as we believe the
eventual liquidation or sale of the company will result in no value for common
equity holders."
Deutsche Bank reiterated his hold rating, saying it remained concerned about
NovaStar's liquidity position.
Greg Saulnier
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