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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: orkrious who wrote (41796)	9/18/2005 12:27:07 PM
From: Henry Niman	Respond to of 110194

No

To: orkrious who wrote (41796)	9/20/2005 1:42:31 PM
From: ild	Read Replies (1) \| Respond to of 110194

New Century Toys With Idea of Spinoff For Now, Idea Is Just an Option By Mathew Padilla Orange County Business Journal Staff Irvine’s New Century Financial Corp. has a card up its sleeve if its stock price continues to languish: split the company in two. The subprime lender talked of a possible split during an investor conference earlier this month in New York. For now the idea is just an option, though it would be the second big change after New Century converted to a real estate investment trust late last year. During the conference, New Century executives sought to convince analysts and investors that their stock is worth more than its recent $2.4 billion market value, which is off by about 30% this year. The company could spin off its mortgage subsidiary, Ed Gotschall, vice chairman of finance and a cofounder, told those at the conference. New Century now has a dual structure. Its mortgage arm funds loans from brokers and gets business directly from borrowers. The mortgage unit has fueled the company’s growth in the past few years. The parent company is a real estate investment trust that holds loans as investments and pays dividends to shareholders. ocbj.com