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Novation Companies, Inc. Message Board

  • NYC_OPINION NYC_OPINION Sep 27, 2003 4:06 PM Flag

    Why no stock splits?

    Don't follow NFI but(NLY and IMH) just saw the investors web site....very good is an understatement....but why hasn't NFI split it's stock to get more institutions interested? Low float is a problem for institutions...and what's with the short interest as a percent of the float? I read about the short position in July 2002 but how about August 2003? Any answers appreciated...

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    • working_on_my_first_million working_on_my_first_million Sep 27, 2003 4:32 PM Flag

      <but why hasn't NFI split it's stock to get more institutions interested?>

      This has been discussed before. I am in the camp that doesn't see much value from a stock split. It doesn't add to the bottom line.

      The mgt in the last conference call said they were neutral on a split.

      <Low float is a problem for institutions>

      I disagree.

      Do note that institutions own about 60% of the outstanding shares. I am not sure what % you are looking for, but 60% is good enough for me.

      <what's with the short interest as a percent of the float?>

      Check out the "shorts" section on the NFI website.

      Evidently, David A Rocker of Rocker partners made a bad bet and went way short on NFI. Knocked the price down and sent the widows/orphans crowd packing.

      Unfortunately, NFI's earnings/div increased and have continued to do so. Leaving Rocker in quite a predicament:

      Cover and send the price to 200/share or keep paying dividends each quarter and try to trade to make up the difference.

      The shorts also have the tabloid the backing them and issuing negative statements about NFI in the press. Wouldn't you know that Rocker is a 10%+ holder of TSCM stock...

      It is my belief that NFI mgt wants to "stick it" to the shorts, and certainly wouldn't mind a nice short squeeze. Increasing the float would definately let the shorts off the hook.

      Still working...

    • If you explore http:
      // all your questions will be answered.

    • Easy. Who would want twice as many shares of NFI? Nostradamus says NFI is going down.

      bb d'bash