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Novation Companies, Inc. Message Board

  • easter_bunny_3ddd easter_bunny_3ddd Nov 10, 2007 12:39 PM Flag

    NFI Has Rightsized and Is In Great Shape

    They got rid of their credit ops, and their excess baggage in servicing. The group of 30 employees retained must be the very best to have survived. This core group will grow the company again to this time be the top mortgage servicer and lender in the world. The time to buy is right now.

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    • OOps. Missed part of my point. They don't save the labor, assuming it is 8.8 mill a quarter. Profit is what is left over, and that 8.8 mill was a labor expense to make the profit. Kirby, you are double counting the 8.8 million a quarter.

    • Whoa, we have some new math here. The 2.8 million per quarter was profit, not sales. That comes to 11.2 million a year. However, it will go up as refis go down. So they sold an asset earning a minimum of 11.2 million for 15 million cash? Was this smart? Or was it desperation?

      And are they really going to be able to rent their houses out without any repairs for the same amount per month was on their notes? I rent by choice and the same place I am in would cost about twice as much per month to buy. Only when it evens out would I buy, and that is how every body is starting to think. The ones that don't think that way can't get financing. 40% of the buyers have disappeared (20% subprime, 20% alternate A, last years figures). So, even assuming that they can fill every place they have with renters with no repairs or rental expense whatsoever, it means they lose 1/2 of that 11% in income. To the extent they are putting people in, it is probably with the property in as is condition at a 5% interest rate with nothing down, planting the seeds of more foreclosures.
      We bought a bank foreclosure in 1982, but only after the bank had put 33% of the price in in repairs and upgrades, and with an 11% mortgage when primes were going for 16%. NFI is in a death spiral.

    • How big a hit do you think the company will take on its risky trading portfolio? Values have plunged, and others have issued warnings.

    • You guys give each other too much credit for being geniuses. Fact is, nobody is surviving the current meltdown. Is Oli or Ace on some other mortgage or REIT board pumping how great they are? No. Sadly this has nothing to do with Bob O, Pumpers, Bashers, or even business fundamentals. This is a case of the cock coming home to roost. For everyone with a dependence on the capital markets. Lots of grandmas probably bought BofA, Citi, CFC, et al stocks too. Were bashers over there hollering "The sky is falling"? Please...
      Casta DOgs

    • They haven't announced their earnings release date. Do you understand why? It is because, once they do, they will be shuttered by the warehouse banks and lose thier licenses since they are below the capital standards for most or all states. They are currently looking for a buyer, but none are to be found. Sorry, but this company is going down. it's sad, but reality.

    • I hope this isn't the real easter bunny, you got some nerve showing your face in here. Telling everyone to buy buy buy, and lets not forget the "my shares are for sale at 200 dollars comment and some just aren't for sale". Then just walks away after everyone lost a fortune believing his BS