StockIceMan's Weekly Stock Pick
Week of
January 22, 2007
| Stock: |
Novastar Financial, Inc. |
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| Ticker Symbol: |
NFI - NYSE - Mortgage Investment |
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| Buy: |
21.00 to 21.50 |
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| Sell: |
32.00 |
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Info: |
NovaStar Financial, Inc.
and subsidiaries operate as a specialty finance
company. The company originates, purchases,
invests in, and services residential
nonconforming loans in the United States. It
offers a range of mortgage loan products to
borrowers. The company operates through four
segments: Mortgage Portfolio Management,
Mortgage Lending, Loan Servicing, and Branch
Operations. The Mortgage Portfolio Management
segment invests in assets generated primarily
from its origination and purchase of
nonconforming, single family, and residential
mortgage loans. It provides finance by issuing
asset-backed bonds and entering into reverse
repurchase agreements. This segment�s mortgage
securities include AAA and nonrated interest
only, prepayment penalty, over
collateralization, and other subordinated
mortgage securities. The Mortgage lending
segment originates and purchases nonconforming
and single-family residential mortgage loans
through its mortgage securities investment
portfolio loan origination network, which
includes wholesale loan brokers, correspondent
institutions, and direct to consumer operations.
The Loan Servicing segment retains the servicing
rights with respect to loans it securitizes. The
Branch Operation segment provides an additional
source for mortgage loan originations, which it
sells either in securitizations or in outright
sales to third parties. The company has elected
to be taxed as a real estate investment trust (REIT).
As a REIT, it would not be subject to federal
income tax, if it distributes at least 90% of
its taxable income to its shareholders. NovaStar
Financial was co-founded by Scott F. Hartman and
W. Lance Anderson in 1996. The company is
headquartered in Kansas, Missouri |
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| Financial Info: |
For the nine months ended
9/30/06, revenues rose 54% to $341.2 million.
Net income from continuing operations applicable
to Common fell 28% to $82.4 million. |
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| Key Ratios: |
Current
Ratio: 0.995, Total Debt/Equity: 8.144, Trailing
P/E: 6.69x, Forward P/E: 6.51x, Price/Book:
1.47, Price/Sales: 2.45 |
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| Share Info: |
There are 36.99
million shares outstanding with 33.88
million shares in the trading
float. Institutions own
approximately 33.30% of the shares outstanding.
There have been no insider purchases and 7
insider sales totaling
144,800 shares in the last six months.
Real-Time SEC
Filings
As of 12/12/2006, there were 11.25 million shares short.
Net Institutional Selling: 896,291 shares prior to latest
quarter. |
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| Articles: |
NOVASTAR FINANCIAL INC
Files SEC form 8-K, Regulation FD Disclosure,
Financial Statements and Exhibits |
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