OK I just started following this stock today, luckily i'm not an owner. I found this stock on Reuter's contrarian opportunities list. That list usually does pretty well. Maybe a disgruntled shareholder out there can tell me exactly whats wrong with this one? Based on fundamentals I dont see how this can go *much lower. I will watch closely, trying to find the bottom.
AKG- I will assume by seeing the responses to your question that most is pure bullcrap. As I see it, it is pure overdone fear that has been sown and the price drop is very oversold. As for the idiot spouting company proclaiming a div cut- pure and simple outright lie As for me, I hold just under 2k shares with a basis of around 25 after subtracting the divs i have received in the last year investor village is a little lighter on the bullcrap than this board as there have been a lot of short positions pilling on and trying to spread the fear
The company has told us that it is going to reduce the dividend - the question is by how much. This certainly is one of the reasons for the precipitious decline in the stock. And, all other subprime entities are falling - NEW, LEND, AHM, etc. The subprime guys are declining because of credit problems with mortgages held in their portfolios and also because of charge backs, which are returns of mortgages sold in securitizations that no payments were made on the loan. Yes, there have been a lot of those recently due to poor underwriting. My hunch is that the stock could decline to $20 at which price the going foward yield would be 18% assuming that the dividend is cut to $.90 quarterly. I have not seen any analysts that are suggesting a dividend of less than $1 - so $.90 is conservative.
<The company has told us that it is going to reduce the dividend - the question is by how much>
Sorry, but you may have heard that from one of the many low life spammers on this MB. NFI has said NOTHING of the sort. They will likely give divvy guidance when they report 4Q earnings around early to mid Feb. In the past, they've paid out divvys from prior year's Taxable Income. Since they've already banked $4+ in TI with a quarter to go in 2006, it would appear there will be no divvy cut for 2007.