took a nose-dive after it reported losing $408.1 million from continuing operations, or $43.99 a share, in the third quarter. That reverses last year's $1.81 per-share profit. NovaStar also believes there's a "high likelihood" it will be expelled from the
following a Dec. 5 review, at NovaStar's request, of that previously announced determination.
The Kansas City, Mo., firm had been among numerous subprime-mortgage lenders caught in the first wave of credit-market turmoil earlier this year, and its stock has lost a tremendous amount of value over the past few months. Today, shares surrendered nearly another 60% to $1.84.
Elsewhere, Punk Ziegal shaved down
price target, and Bank of America sharply lowered its fourth-quarter bottom-line estimate to a loss from the prior profit expectation, as Standard & Poor's downgraded Bear's credit rating to A from A-plus. S&P also has a negative outlook on the New York-based brokerage.
This all follows Bear's prediction on Tuesday that it will
take $1.2 billion in fourth-quarter writedowns
tied to mortgage-related securities. Shares had initially climbed as the company also sketched out making a steady recovery from the subprime mess in which it has been mired. Today, shares retreated 2.3% to $100.88.
(GME - Get Report)
was up 3.8% ahead of the company's third-quarter earnings Tuesday. Analysts expect GameStop to report earnings of 23 cents a share on $1.42 billion in revenue. GameStop was up $2.03 to $55.90.