The NFI Cultist surely has their head in the sand; i. e. putting anyone with facts that don't match their 'rose colored' view under attack...Herb from "Market Watch" is a prime example.
The Cultist NFI touts the book value higher than $13./shr ignoreing the fact the value of NFI portfolio of loans have fallen in value.
The NFI Cultist believe this year dividend will be more than $4./shr. ignoreing the fact the company is facing liquidity problems and their prodution is down over 50% and not getting any better going forward.
The NFI Cultist over the past two years has watch the stock price drop from above $50./shr to below $5./shr and say NFI is a buy. If they liked it at $50./shr or $38./shr while paying that fat $5.+ dividend I wonder what the NFI Cultist really thinks about NFI @ $5.00 per share with NO HOPE of a dividend for the next ??? til 2011 by the companies own words.
Maybe these people have never seen a company in a death spiral, and they don't recognize the signs.
NFI is an exclusive sub prime lender, and the sub prime business is dead. There isn't anymore business, and the 8-K proves it. In February, management said they have all the liquity they need, but two days ago they needed 100m at over 9% for "liquidity". They put themselves up for sale, but there's no business to sell. Any assets that do remain will be long gone before the common stock holders get to the head of the line.
"NFI is an exclusive sub prime lender, and the sub prime business is dead."
You've got to be kidding. As long as there's credit subprime will NEVER die. For over 100 years now subprime has had it's peaks and valley's, but there's ALWAYS someone that will take a measured risk and make loans to those that don't qualify for prime type lending.