Shares of NovaStar Financial (NFI) 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 NYSE 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 Bear Stearns' (BSC) 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