I tried calling the IR myself. No answer of course.
Here is an excert from a article about New Centruy, now bankrupt and on the pinksheets.\
The second-largest subprime lender, New Century Financial , plunged 75.6% for the five trading days ending March 8, as it was forced to buy back loans it had previously sold. The company's lines of credit dried up, new loan activity ceased, and 4% of its workforce has been fired.
In March, NFI fired 17% of it's workforce!!! Here is it from the 8k\
On March 14, 2007, the Audit Committee of NovaStar Financial, Inc. (the "Company") committed to a workforce reduction pursuant to a plan of termination (the "Plan") described in paragraph 8 of Financial Accounting Standards Board Statement of Financial Accounting Standards No. 146 Accounting for Costs Associated with Exit or Disposal Activities (SFAS No. 146), under which material charges will be incurred under generally accepted accounting principles applicable to the Company.
The Company is undertaking the Plan to align its organization with changing conditions in the mortgage market. The Plan will result in the elimination of approximately 350 positions resulting in an approximate 17% reduction in the Company's overall workforce. Subject to completion of the necessary legal requirements, implementation of the Plan will begin immediately and conclude during the second quarter of 2007. The actions focus on the Company's wholesale loan origination group and related functions, including employees at the Company's headquarters in Kansas City and at its operations centers in California and Ohio. The Company's servicing organization is not affected by the reduction.
So let's see New Century which is already bankrupt fired 4% before the announment of bankruptcy. NFI already fired 17% in March. Hmmmm I do beleive bankruptcy is around the corner!!!
that's 4900 at 5.15! The sales outnumber the buys over 2 to 1. the damn specialist just keeps it in this area to unload more worthless shares to the stupid newbie herd traders. He knows this is the last day to hand off the bag before she really tanks. do not buy into the trap, you'll get hammered tommorrow!