Thursday's Winners and Losers: NovaStar Financial
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 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.Video-games retailer GameStop (GME) 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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV