Wednesday, February 7, 2007

Novastar (NYSE: NFI)

Ok, so the cat's out of the bag. It's Novastar Funding (NYSE: NFI) that a certain bunch of Wall Streeters were wondering about this morning. It may be that they were reacting to this Herb Greenberg article: http://financial.seekingalpha.com/article/26143. Longs will of course say Greenberg is being used by the shorts. Who knows. The NFI options premiums are through the roof and the company's dividend yield of 29.6% has got to make any reasonable person wonder when the next shoe is going to drop... not a size 4 shoe, something like a size 15 EEEE shoe. But all is merry and gay today, NFI is up 8%. This is one to keep any eye on.

1 comment:

Anonymous said...

Interesting that it continued to go up. Big dead cat bounce or someone knows something about a possible takeover. I was a loan officer for a broker for about 6 months and the industry is disgusting. You peeled back the onion layers and it gets more rotten not better.

Mike