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Novation Companies, Inc. Message Board

  • coolbreeze_53 coolbreeze_53 Aug 9, 2004 11:43 AM Flag

    Bad commentary

    I went to see my broker this AM to buy some calls. While we were talking another broker from the adjoining office came in & we were discussing various stocks & he asked me what stock I was trading today & I said NFI. He told me another client had been in a few weeks back to buy some NFI & that he advised him against it, because his research had shown that NFI had done an offering to pay the dividend. My broker said she couldn�t recommend the stock because the yield was too high & that if NFI could do this kind of business, why wouldn�t everyone?

    I started to discuss the history of the stock & the SI & how that has affected the media�s presentation & that Herb & Jon once worked for you know who & they began to look at me like they were going to bring the guys in the white suits out if I didn�t 86 that place right now.

    Kind of makes you think twice about who is winning here.

    Best.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • <<they began to look at me like they were going to bring the guys in the white suits out if I didn�t 86 that place right now. >>

      I'm familiar with that scenario....

      It's like the whole StockGate/nekkid shorting etc etc. It's as if you're telling folks that there really are little green men in Area 51.

      Let us prey,
      Mother �t

    • <<He told me another client had been in a few weeks back to buy some NFI & that he advised him against it, because his research had shown that NFI had done an offering to pay the dividend>>

      If it would be me, I would go back to ask for the specifics. Is his research based on what the press release says? is it based on what offcial documents he found ? Did he get private docs?

      Just ask for the facts, you may hear that is reseach is based on a friend's that "is well placed", or is short "rumors".
      A research must have hard facts and we are all interested is indeed they are facts that shows the divi was borrowed. But so far, after months, I have seen nonone at all, including shorts, that have shown documented facts that cannot be dispelled.

      • 3 Replies to countachqv
      • <Just ask for the facts, you may hear that is research is based on a friend's that "is well placed", or is short "rumors".>

        Good idea.

        If the facts are from the brokerage, ask for a copy. If the facts are not facts but rumors heard 'on the street', ask that they quit spouting rumors to clients. In fact, if that's the case, you might ask to talk to his/her boss and discuss the issue. Maybe take a copy of the last presentation with you and describe the income stream that pays the dividend.

        Rumor is hard to destroy. Picture the little Dutch boy with his finger in the dike (or dyke, if you prefer); all that water piled up behind the dike is fact and the dike is built upon the manipulative press from and by the shorts. That one small finger is rumor. Fact can't get through the short's dike because rumor has the path plugged. Unless someone goes up to that little SOB that has his finger in the hole and clobbers him in the head with a ball bat, fact will never start flowing and the short's dike will hold. But, the rumor is killed then the dike will crumble, and fact will spread out and cover the dominion. Unfortunately, to kill the rumor we have to get through all the folks who live in the shadow of the dyke.

        Oh well; passes the time ...

        bov

      • If it would be me, I would go back to ask for the specifics. Is his research based on what the press release says? is it based on what offcial documents he found ? Did he get private docs?"

        CA:

        Actually, I did ask if he had read that the company had reported that they had done a secondary to pay the divvie & he did say that he had read it �somewhere else.� He did say �I could be right,� but again, that�s when they started to look at me like I was Mel Gibson in Conspiracy Theory (which by the way, he turned out to be correct). I have this overwhelming desire to go see that guy in about 6 months. Unfortunately for him, I am just that kind of guy.

        Best.

      • As I said before my broker last year said he would not recommend because they did not cover it and when I ask after things settled this year after WSJ article that is what he used against it. I bought and bought more since and will buy more if 15% is the dividend even a bit less is ok.

    • Brokers (salespeople) ARE NOT ALLOWED to recommend ANY stock not "approved" by their research departments!

      Its all part of the regulatory climate.

      I pity ANYONE who takes advice from a broker. I also saw a study that showed that when any brokerage firm employed two analysts, the two analysts held conflicting opinions on 55% of the companies they both covered.

    • "to buy some NFI & that he advised him against it, because his research had shown that NFI had done an offering to pay the dividend."

      Oh, I would have asked to see a copy of that research showing that an offering was used to pay the dividend! Bad research, worthless broker. Joe

    • The brokers who don't understand NFI and spout off rubbish about the dividend were probably the same guys who told me it was a "waste of money" to buy Enron puts.

    • Cool:
      "Kind of makes you think twice about who is winning here."

      Perception affects the price. Yes, i understand the company. What I don't understand is why the Company couldn't have put out a press release like LUM did today.

      And, re: the discussion of long/long vs. short/long over the weekend I feel the point was missed. Yes, day to day the pps does not make a difference, but 10 months from now when the company will need funds, will investors look at the large SI and get scared away? Why? The Company has not done anything wrong, we know the shorts tried to hurt us.

      When someone hurts you do you think they will stop? My plan is simple, it will not cost us anything, just accelerate money that is already due us. I think if Lanny Davis wants to earn his money he gets the CEO's of NFI, ALD and ACAS together. They all have the same problem. In battle you do a plan. What if the plan was a special by all 3 companies around 2nd Quarter next year. The special would clearly be seen as a way to raise value before a new financing, dry out and weaken the shorts and let everyone know your willing to fight back. I don't know if this is a long/long or short/long strategy, I do know that when your in a battle you have a plan.

      And, I would humbly suggest to those that post here thanking the shorts for taking the price down, they should think what is their
      mindset. If a short is in the game to take the price to zero would you keep buying all the way down and keep thanking him?

      Hank

      • 2 Replies to adjpublic
      • <When someone hurts you do you think they will stop? My plan is simple, it will not cost us anything, just accelerate money that is already due us. I think if Lanny Davis wants to earn his money he gets the CEO's of NFI, ALD and ACAS together. They all have the same problem. In battle you do a plan. What if the plan was a special by all 3 companies around 2nd Quarter next year. The special would clearly be seen as a way to raise value before a new financing, dry out and weaken the shorts and let everyone know your willing to fight back. I don't know if this is a long/long or short/long strategy, I do know that when your in a battle you have a plan.

        And, I would humbly suggest to those that post here thanking the shorts for taking the price down, they should think what is their
        mindset. If a short is in the game to take the price to zero would you keep buying all the way down and keep thanking him?

        Hank>

        At least you're thinking of a PLAN here Hank. As we drift down by over .30 on NFI due to some well-placed short-selling, I'm wondering if everyone in the co. would be so brain-dead to the shorties if the pps on NFI reaches $25?

        And, no today is not an industry-wide take-down as IMH is UP by .38.

        Makes one wonder doesn't it?

      • <If a short is in the game to take the price to zero would you keep buying all the way down and keep thanking him?>

        Damn right. At zero I could buy an infinite number of shares. I'd receive infinite dividends each quarter. I'd be infinitely rich! Isn't that worth thanking the shorts for, just a tad? LOL

        bov

    • If the employees at your brokers were one 10th as motivated as the people who post here, they wouldn't be employees.

      As I was reading what you were telling, my stomach did turns.

      Schwab doesn't cover NFI..but the better rec is what do they buy for institutional fund? Big increases in purchases of NFI.

      I can just see you backing out the door..rushing to get away. You feel like you are in a cult when you try to talk sense to these people..brainlocked. They have corporate standards they have to uphold. If it isn't on "the" list, they can't rec it. They sometimes get paid based on their recs. May as well just give em your credit card.

      • 2 Replies to mhelburn
      • Your average brokerage employee does less true DD than your average individual investor. They only know what is on their crop recc list. Everything else is "bad" in comparison and they know all the facial expressions, etc to create FUD.

      • I can just see you backing out the door..rushing to get away. You feel like you are in a cult when you try to talk sense to these people..brainlocked. They have corporate standards they have to uphold. If it isn't on "the" list, they can't rec it. They sometimes get paid based on their recs. May as well just give em your credit card. "

        MH:

        They had no problem taking my check for the contracts though. I think that for the most part these guys sell shares of Coke, Exon & what you refered to as their list.

        I agree w/ all of the posts that responded to mine.

        Long & strong.

        Best.

    • <Kind of makes you think twice about who is winning here.>

      Thanks, cool. That's they type of story that gives me confidence to stay 100% NFI. When Mr. Market shows his/her ignorance; when Mr. Market can't find anything wrong other than 'the return is too high' and that 'they are a ponzi scheme'; that's when my confidence is reinvigorated.

      Sure is good to have yet another independent source that drives dumb-nails into the short's coffin.

      bov

      • 1 Reply to bovinepoor
      • I also believe it is mentioned they have 211 mil in cash and financing availible was raised so I believe their line of credit people know more than most. My broker just more or less told me last year that Smith Barney did not cover it so he would not recommend it. It was under 40 then so I bought under 40 this year but lost the split. Many brokers get discounts on what they push so best to see what they can
        prove what they have done for other investors. I only wish I would use my own advise some times.

    • As long as the divvy check keeps showing up in my account and the company doesn't need to go back to the well, I am winning big time.

      But, that conversation sure does prove that it is a lot easier to get a bad name than a good one, even when the bad name is completely unwarranted.

    • Sounds like you need a new broker, one that considers your needs not their own.

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NOVC.PK
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