Friday, September 28, 2007

Novastar Sends Out SOS

Naked shorting poster child Novastar Financial has sent out a distress signal, Herb Greenberg reports, in the form of an 8-K.

Says Herb: "Hard to decipher through the thickest of thick leagalese, but if I read NovaStar's (nfi) latest NovaStar 8-K correctly, it's hangin' on by a thread and Wachovia, it's big lender, is pulling out all (and perhaps, it's last) stops to keep the thing afloat."

I'd say it's time to put women and children in the lifeboats, and lower away. Or have another reverse split.

I wonder if Phil Saunders a/k/a "Bob O'Brien," the ex-used medical equipment salesman who has pimped this piece of junk, has any other hot stock picks up his sleeve?

© 2007 Gary Weiss. All rights reserved.

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