Here is the story.\ NEW YORK, Aug 9 (Reuters) - NovaStar Financial Inc (NFI.N: Quote, Profile, Research), a mortgage lender, posted a quarterly loss of more than $50 million on Thursday after writing down the value of home loans on its books. The Kansas City, Missouri-based company said its second-quarter net loss available to common shareholders was $54.5 million, or $5.84 a share, compared with net income for common shareholders of $33.1 million, or $3.97 a share, a year earlier. A incredible 5.84 per share loss!!! Also of note is.\ From June 30, 2007 through August 8, 2007, NovaStar has been subject to margin calls of approximately $76.5 million due to the extremely volatile and less liquid secondary market, which has adversely affected the value of its mortgage securities and mortgage loans. That is 76.5 million bucks of margin calls in just a little over a month!!! Wachovia is their wharehouse lending connection. With only about 80m in cash left, the very next margin call will do them in ala like AHM!!! With surmounting losses and margin calls that are only to get worse, shorting or buying puts on this subprime mortgage lender that is next in line for the auction block behind AHM is a safe bet! Down 7% after hours and will be much worse tommorrow morning. You can still get cheap puts, do so or short this pathetic, bankrupt co. to oblivion. Delisted and on the pinksheets(LIke AHM, and NEW, now AHMIQ.PK and NEWCQ.PK) whithin the next week.