[QUOTE=aceventura3]
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Originally Posted by host
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ace....your WSJ article is wrapped around the same conflict of interest as this
is:
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http://www.marketwatch.com/news/stor...8EF19A722BA%7D
New Century upgraded at Bear Stearns
By Alistair Barr, MarketWatch
Last Update: 4:19 PM ET Mar 1, 2007
SAN FRANCISCO (MarketWatch) -- New Century Financial Corp. was upgraded Thursday by analysts at Bear Stearns, saying the risk of the subprime lender's shares falling further is limited by the potential for an acquisition of the struggling business.
Shares of New Century (NEW :
new century financial corp m com
News , chart , profile , more
Last: 3.21-0.66-17.05%
2:00pm 03/12/2007
Delayed quote data
NEW3.21, -0.66, -17.1% ) were lifted to peer perform from underperform by Scott Coren and Michael Nannizzi at Bear Stearns.
The shares climbed almost 3%to $15.78 during afternoon trading Thursday. They've still slumped almost 50% so far this year due to signs of a credit crunch in the subprime-mortgage industry.
Subprime mortgages are offered to home buyers who fail to meet the strictest lending standards. Companies like New Century that specialize in these types of loans have suffered as housing prices stopped rising and interest rates climbed from record lows. See full story.
New Century slashed its forecast for loan production earlier this year because early-payment defaults and loan repurchases have led to tighter underwriting guidelines. The company also said that it has to restate most of its results from 2006 because of mistakes in how it accounted for losses on repurchased loans.
Chart of NEW
If New Century is forced to sell itself or liquidate, the stock could still be worth $10 to $11, according to Coren and Nannizzi. ......
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http://www.denverpost.com/extremes/ci_5417984
Foreclosures may hit 1.5 million across U.S.
By Bob Ivry
Bloomberg News
Article Last Updated: 03/12/2007 10:00:48 AM MDT
....'Too Early to Tell'
"It's a little too early to tell how it shakes out for investment banks," said Andrew Davidson, president of New York- based Andrew Davidson & Co., which advises fixed-income investors on mortgage bonds. "If it turns out that they have large losses, the investment banks tend not to be very forgiving and usually terminate businesses that haven't worked for them." <h3>Dale Westhoff, a senior managing director at New York-based Bear Stearns Cos., the largest underwriter of mortgage bonds, said last week that failing subprime lenders "are going to be absorbed very quickly."</h3> "Hedge funds and private equity are going to play a very important role in buying distressed assets," Westhoff said. ......
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ace....the markets are "rigged"....the "tell" is that the "largest underwriter of mortgage bonds is the same firm whose anal-ysts are "talking up" the stock price of one of the "top three" sub-prime lenders, "NEW", a company that fed Bear Stearns the crappy loans that it put lipstick on, and sold as "securitized" bonds. Your WSJ article is more or that "happy talk", BS propaganda from the big investment banks....because if they told the truth, the housing market would crash from a liquidity crunch, and the "bottom lines" of these "big boy" thieves, would be negatively impacted.
This "scam" came with the, at least "tacit" approval of federal regulators, and Fannie and Freddie management. The losers....the bagholders, will be every J6P who works in a home or mortgage related industry....and later....by sometime in 2008, most of the rest of us...
ace....when the "BS" anal-ysts upgrade "NEW", eleven days ago....the stock's price was above $15. Trading is halted now by NYSE...."NEW" closed friday at $3.21 per share.... my Level II screen (real time stock quotes)....shows, when and if trading in "NEW" resumes, the bid is $1.65 and the ask is $1.68....why don't the Bear Stearns shills who claimed it would be worth...worse case....above $10 per share, just ten days ago, buy "NEW" for their investment bank.....
ace.....I can lead you to it, but I can't make you see. All of the signs are there....and the thieves who run Wall Street, and the FED/Fannie/Freddie, and every real estate agent and mortgage banker who gets in front of a mic, or in print, will soft peddle this decline to depression, all the way to the bottom.....down, down, down....on a wall of (misguided) hope!