I was expecting that NFI would actually see a dead cat bounce today after yesterday's drubbing. But instead the stock is down another 7%. Other subprimes are lower today. Even NEW which was up 3% on a dead cat bounce has pulled back off the highs.
Here's a new concern. LEGAL ISSUES. The KC Star is reporting a judge has certified a class action suit against the company for hiding regulatory violations from shareholders. Click to read about Novastar legal woes, That is actually one ugly story.
Bear in mind, NFI's dividend yield is over 30% at the present time, so there's pessimism the company will also eventually announce a dividend cut.
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