Wednesday, February 7, 2007
Subprime Woe - New Century (NEW)
Is this really a surprise? Subprime lender New Century warns of a loss - Click here to read about New Century. Late today I took a short position in NFI because of the nutty dividend yield and ultra high options premiums...looks like the trade will start to pan out tomorrow. NEW is down 15% and is dragging the rest of the group lower.
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2 comments:
Jim, how much of this type of news is the market going to ignore? I have looked at fundamentals and technicals and now I am confused as we keep going higher and higher especially in small caps and mid-caps that you would expect to be worse off with this kind of news from NEW!! I know it is liquidity, but it is getting to be quite a joke!
Pretty Amazin' ain't it! Stock futures are down a bit tonight and I think we may see some concern about this at least for maybe 10 minutes tomorrow morning.
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