New Century Financial Down 40% Today

One day drop of 40% and it's not done dropping yet.

I'll be surprised if it remains solvent.

 

It all starts with a little snowball.

 

I had this stock as a short for 2006 and it did nothing but float between 35 and 40+,

shorting was out of question due to the high dividend payments, now i regret it. CHECK OUT LEND as well.

 

Is this NEW a good buy now?

"Last month's total mortgage loan production was $4.2 billion, up 5% from January 2006, according to the company. Non-prime loan production dropped 2.9%, to $3.4 billion from $3.5 billion.
However, the level of early-payment defaults and loan repurchases have led to tighter underwriting guidelines, according to New Century Financial. "

-2.9% drop in loan production. why stock down 40%?

 

All they do is buy subprime mortgages.

Really, really subprime ones....


Their troubles have only started.

 

FED is another one that will start restating in the second half of this yr

 

higher interest, risky ones is that's why?

 

So that people like me can swipe up 2000-5000 shares after a couple of days and make a little chachingo on a $1 pop.

 

puts are so bid on these puppies that its obscene!

 

NEW is going to get rolled again after they cut their massive dividend (which should happen soon).