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Novation Companies, Inc. Message Board

  • oldmanknows oldmanknows Jul 29, 2007 5:50 PM Flag

    AHM also sold convertible securites

    125 million dollars worth to Marathon Asset Management, and it didn't help and now they announce margin calls and the divvy delay. Does the story sound familiar?

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    • yeah, if you cant depend on a STOCKBROKER to scrupulously follow all the rules, what can you depend on?

      *rolls eyes*

    • I'm sure the shorts will be happy to speak with there wallet. On Wallstreet that is all that matters. Winners make money and lossers dont.

      That's what makes the system great.

      Any any case I would rather be dumb and rich rather than smart and poor like the NFI longs.

      NFI and all of the Mortgage REIT's will be pounded Monday thanks to AHM. Another pile on day for the shorts im sure + longs that give up hope.

      Kirby: As as a matter of course a longs will be credited with the rights which are meaningless unless excersized. At that point either the shorts will issue a short preffered and keep your 25 or it will go to the company and you will get your preferred.

      With the current share price it would be financial suicide to exersize the rights because what you get back will be worth much less that 25.

      The only think even worth looking at for a by is the NFI-PC preferred trading at 12. This will pay an 18% yield based on current purchase price and this will be paid in cash as long as NFI is a going concern. The $150 million really helps the preffered holders and it increases the change that the company will make it which is still questionable at best. If the company makes it you get a good cash yield plus growth. The smart people bought this preferred under $5 earlier this year. If it goes under 10 I will take a second look. You will either make a lot on this investment of loss almost everything. Perhaps worst case you will get 4 to 8 quaters of dividend yield if this thing goes belly up which at least gets you back some of your money.

      You got to wake up and smell the coffee and get over your own hype on this stock.

    • As a chartman you should see the technicals indicate an oversold position, and many trades are made via programs.

    • Whatever happens Monday won't prove any point of view. Either side will say that their case didn't happen because most investors are dumb.

    • I heard that if longs put in sell orders, their broker cannot offer those shares to short, even if they are limited at unreasonably high prices.

      Sounds like a good tactic.

    • Kirby doesn't get it!

      The rights and the R/S changes nothing except perhaps to make the stock a bigger short target. I wouldn't be surprised to see the stock trade below the value of the paper dividend that is to be paid at about 10 per share. This of course means that the longs will be paying taxes on a non qualified dividend in paper that will not trade day one at the value of the qualifed dividend. Lose-Lose for longs

      What a joke.

    • I'm not talking about shorting the rights, Kirby. I'm talking about your decision to exercise your rights.

      Either you'll exercise them or they'll disappear. As a short, either decision is a winner for us.

      How many D-2's did you want?

    • That's very sloppy reasoning oldman.
      That's like saying ...
      antecedent: Company A sold preferred securities and then had margin calls.
      Conclusion: All companies that sell preferred securities have margin calls.

      In NFI's defense they have not gotten margin calls and truthfully we probably do not know all the details of AHM or NFI's financials. These seem to have very complicated financials. Just look at NEW. They looked great just the month before they went belly up. While I am no expert on NFI's books they seemed to have turned cautious just at the nick of time and they have weathered a similar storm back in 1999.,

    • The article doesn't say when they sold these securities. Does anyone know?Funny, I actually remember Cramer recomending this stock several months ago.