Monday, March 5, 2007

New Century (NEW)

Merrill just reiterated its sell on New Century (NEW) saying that bankruptcy for the company is now "likely".

To recap, after the bell on Friday... Company announced
  1. Staff of the SEC has requested a meeting with the Company
  2. NYSE investigating insider trading of shares ahead of early February restatement announcement
  3. The United States Attorney's Office for the Central District of California is conducting a criminal inquiry under the federal securities laws in connection with trading in the Company’s securities
  4. NEW now in breach of various loan covenants

3 comments:

Lauriston said...

60% down - UN-F-BELIEVABLE!!!! Keep in mind it is already down from $50 to $15 in 10 months!!

Jim K said...

Hi Lauriston, yet stock futures continue to recover

Mike Truong said...

I hope the market recover because it would give me a better entry point to go after LEH,BSC,MER,GS. I am leaving the carcasses of the subprime for the bone pickers although I still hold a small put position in LEND. Cheers to all