02.24.07
Subprime lender stock loses 43% of Value in a day
Shares of NovaStar Financial, which makes loans to people with weak credit, fell almost 43 percent yesterday after the company announced a surprise loss of $14.4 million for the fourth quarter and told investors that it might not make enough money to pay dividends for the next four years. Subprime lenders are not obligated to follow the tougher regulations that apply to commercial banks and as a result loans are available to virtually anyone – creditworthy or not. Is this a sample of what is to come?
See the NY times full article here.
Investments And Securities Fraud » Subprime lender stock loses 43% of Value in a day (forclosure for investors) said,
February 25, 2007 at 2:55 pm
[…] Subprime lender stock loses 43% of Value in a dayShares of NovaStar Financial, which makes loans to people with weak credit, fell almost 43 percent yesterday after the company announced a surprise… […]