I'm sending this email to all my
friends that I believe may be interested in knowing about what I believe
to be a very good opportunity. I'll probably never send another email
to you like this and maybe I shouldn't be sending this, but I am.
As a lot of you may know, I've been what I consider to be a "bottom feeder" or "turnaround"
type of investor for about 8 years now. As some of
you also know, I try to get to know my investments far more intimately
than the average investor.
Before I share with you some of the details about an
investment in Novastar Financial (symbol novs.pk) and their preferred
share (novsp.pk), I do want to say that a $1,000 investment in Novastar
could as easily go to zero as it could grow to $10,000 within the next
18 to 36 months.
Here are some of the details as I know them:
* Novastar was founded in 1997 as a subprime mortgage lender in KC, Missouri
* Lance Anderson, the CEO and one Novastars two original founders, is from Va. Beach
received his undergraduate degree from ODU, received an MBA from Drexel and some
sort of Musical degree from Berkley in NY (I've been told he's a top Jazz guitarist...just
thoughtI'd throw that in)
* Novastar is the only remaining subprime mortgage lender left in the US even though
they've been in a hibernation mode for over two years while managing or working out
a 13 Billion dollar mortgage portfolio that is NOT recourse back to them if the mortgages
are foreclosed on.
* Novastar d-reited for tax purposes two years ago
* Novastar has a tax credit of approximately 380M to difer the need to pay any taxes on
this amount of future income.
* Novastar purchased, in August of '08, an Appraisal Management Company called Streetlinks
that PR's have told us will grow to some 600 employee's doing from 500K to 1M appraisals
within the next 2 to 3 years. Effective today May 1, new legislation know as HVCC or Home
Valuation Code of Conduct goes into affect, and is one of the reasons I believe that Novastar
got into this business.
* Novastar purchased, just yesterday, a financial institution similar to a bank called Advent.
Advent was formerly owned by Mark Ernst the former Chairman and CEO of H&R Blocks
Subprime Mortgage and lending business and now a director at the IRS..go figure?
I personally believe that Novastar purchased this financial institution to get back into
what I call the subprime lending business "done right" where I know there's a lot of money
to be made.
* Novastar's stock is trading at .90 and it's market cap with just 9M shares outstanding
is only 8.1M. Just five years ago and prior to a reverse split of 1 for 4 shares of stock
it was trading for the equivalent of $280 a share when compared to today's share price of .90,
and it had a market cap back then of 2.8B compared to today's 8.1M.
* Novastars stock trades what is called "very thinly" and may be hard to buy, but I believe
accumulating shares is worth the effort. If any of you want to know how "best" to go about
doing it, I'd be glad to share with you what I know.
* So why is Novastar so cheap you may ask? It's partly because of the horrific credit crisis
we've experienced and are still experiencing and it's partly due to market manipulation by
hedge funds trying to "short" companies like Novastar out of business.
* There you have it...I probably know a lot more about this company than I should, but I've
made it my business to learn, know and understand as much as I possibly can.
* Let me know if you have any questions and please don't just take my word for it...do some
of your own due diligence to either agree with or disagree with what I'm recommending.
Have a Great Day Everyone
cell# 4399902 |