I have never seen a better trader than
- Thread starter mrmarket
- Start date
I just want to say for the record that I apologized to mr. market for my remarks last month and that im glad he's back....I was starting to run out of material!!!
seriously though, Welcome back ....and i have a challenge for you .......Give me a play, long or short, for the next 2 days...or at least a time frame . If im wrong i'll admit it and i will be your biggest backer since Alice graced us with her presence
seriously though, Welcome back ....and i have a challenge for you .......Give me a play, long or short, for the next 2 days...or at least a time frame . If im wrong i'll admit it and i will be your biggest backer since Alice graced us with her presence
May was a cool month weather wise but it was red hot for $$$MR.
MARKET$$$.
When interest rates are near zero, what's a good way to make money?
Give up? Why don't you lend money, because for every dollar you lend
and collect interest, you're almost certain to make more money.
Today I bought NFI at $51.45. I will sell it in 4 to 6 weeks at
$59.40. Here's why I like NFI:
NovaStar Financial Inc. invests in mortgage assets, with a focus on
non-conforming mortgage loans. The Company also originates single-
family non-conforming loans and manages retail brokers operating.
Loan servicing is also a critical part of its business operation. By
servicing loans, the Company strives to identify problems with
borrowers early and take quick action to address problems. As of
December 31, 2002, NovaStar had 216 active branches in 35 states.
Nonconforming loans - those designed for borrowers with blemished
credit histories or limited documentation - create even more work
because you have to hunt down lenders and products to meet specific
needs. NovaStar's Internet underwriting system, called NovaStarIU,
lets brokers lock in prices and loans for customers online. That
eases a lot of the paperwork and loan hunting.
The slow economy helps, because it creates even more demand for loans
to borrows with checkered credit histories. Interest rates got
pretty low for conforming mortgages, but there's still a big segment
of the population that couldn't qualify for a standard form of
credit. Moreover, nonconforming loans are less sensitive to a rise in
interest rates because they're typically used to consolidate debt or
credit cards.
Novastar averages around 8.5% to 9.0% for all of the loans it offers,
but the rate it pays for the funds is a lot lower. Each quarter,
nonconforming loans are pooled and sold off as bonds with guaranteed
payments. NovaStar insures the loans to lower the risk to investors.
As the Fed Funds rate drops, the spread tends to widen. Many
customers who get home equity lines of credit don't subsequently
refinance once they pay off their credit cards. NFI continues to
enjoy this coupon of income. Sharp interest rate moves post a risk.
NovaStar is an active hedger, which means it tries to lock in
favorable rates over long periods.
NFI's stock is up 180% in the last 12 months. All this with a P/E of
only 8.56. I tell you these mortgage companies get no respect on the
street. This stock has mo babyâ¦it's r^2 correlation coefficient is
0.85 over the last 6 months. Yup..a straight stairway to heaven.
If you look at NFI's earnings profile, it made $2.07 last quarter.
Since we don't see the economy heating up until at least the 4th
quarter, interest rates should stay very low. This will enable NFI
to make a ton of money this year. $$$MR. MARKET$$$ projects earnings
of $9.76/share. This means NFI, with its modest P/E of 8.56, will
still get to a share price of $83.55 by the end of the year, well
past my sell target of $59.40.
Not that I ever care about what the experts think, but:
PortfolioGrader.com, published by Louis Navellier, who also publishes
MPT Review and Blue Chip Growth Letter. Navellier currently gives NFI
a grade of "A" on an A-to-F scale, up from "B" in early February.
Dow Theory Forecasts, edited by Richard Moroney (no relation to Bart
Moroney who eats for the cycle), also has increased its rated of NFI.
This newsletter's "Quadrix" stock rating system currently gives the
stock an overall score of 99 on a 0-to-100 scale, which is higher
than the score given currently to any other stock.
Revenues for NFI have grown 250% over the last 2 years. Their
brokers are sa â mokin babeeeeeeeeee!
Wait..I didn't even get to the good news yet. NFI paid a dividend
last year of $6.08/share. That's right..6 bucks. That's a 12% yieldâ¦
woo hoooooâ¦more money! They paid $2.25 last quarter for crying out
loud. This company is swimming in cash. With the new tax laws, this
is even better for NFI investors!
NFI return on equity is 27%.
If all of this is too good to be true, it probably is. NFI's shell
game can't go on forever. Competitors are going to want to get in on
this. As their loan portfolio gets bigger and bigger, their
outstanding receivables are going to get bigger and bigger, thus
their default risk will weigh heavier on their balance sheet. The
good news is that the market probably recognizes this risk and that's
why Wall Street only rewards NFI with a P/E of 8.56. I'm only taking
this for a short ride, and I don't see anything fundamentally
different in the economy over the next couple of months. For now,
NFI is an incredible money machine.
OK..let's hear what the boss says:
"Our performance is on track with the goals we outlined for
2003--expanding our portfolio of mortgage-backed securities with
attractive, risk-mitigated returns by funding a growing number of the
nation's home mortgage loans," said Scott Hartman, Chief Executive
Officer. NovaStar expects earnings for the full year to total
between $7.50 and $8.00 per share (SANDBAGGERS!) , as compared to
previous full-year guidance of between $7.00 and $8.00 per share.
"First-quarter production was in line with our previously stated
goal to originate between $4 billion and $6 billion of non-conforming
loans in 2003," Chief Operating Officer Lance Anderson said. "Our
goal is for NovaStar's growth in nonconforming loans to outpace the
growth of the nonprime market."
Mr. Anderson added: "We opened 30 affiliated branches, reaching a
total of 246 branches nationwide. And it's very important to note that
22% of the non-conforming loans originated in our wholesale business
were taken from our branches, compared to 17% in the fourth quarter.
Fifty-six percent of our conforming loans were originated in our
branch offices. Our goal is to increase market share for all of our
operations in 2003, and we're off to a great start."
I think $$$MR. MARKET$$$ is off to a great start as well. I am
HUGE!! Bring me your finest meats and cheeses!
$$$MR. MARKET$$$
http://groups.yahoo.com/group/mrmarketishuge/
MARKET$$$.
When interest rates are near zero, what's a good way to make money?
Give up? Why don't you lend money, because for every dollar you lend
and collect interest, you're almost certain to make more money.
Today I bought NFI at $51.45. I will sell it in 4 to 6 weeks at
$59.40. Here's why I like NFI:
NovaStar Financial Inc. invests in mortgage assets, with a focus on
non-conforming mortgage loans. The Company also originates single-
family non-conforming loans and manages retail brokers operating.
Loan servicing is also a critical part of its business operation. By
servicing loans, the Company strives to identify problems with
borrowers early and take quick action to address problems. As of
December 31, 2002, NovaStar had 216 active branches in 35 states.
Nonconforming loans - those designed for borrowers with blemished
credit histories or limited documentation - create even more work
because you have to hunt down lenders and products to meet specific
needs. NovaStar's Internet underwriting system, called NovaStarIU,
lets brokers lock in prices and loans for customers online. That
eases a lot of the paperwork and loan hunting.
The slow economy helps, because it creates even more demand for loans
to borrows with checkered credit histories. Interest rates got
pretty low for conforming mortgages, but there's still a big segment
of the population that couldn't qualify for a standard form of
credit. Moreover, nonconforming loans are less sensitive to a rise in
interest rates because they're typically used to consolidate debt or
credit cards.
Novastar averages around 8.5% to 9.0% for all of the loans it offers,
but the rate it pays for the funds is a lot lower. Each quarter,
nonconforming loans are pooled and sold off as bonds with guaranteed
payments. NovaStar insures the loans to lower the risk to investors.
As the Fed Funds rate drops, the spread tends to widen. Many
customers who get home equity lines of credit don't subsequently
refinance once they pay off their credit cards. NFI continues to
enjoy this coupon of income. Sharp interest rate moves post a risk.
NovaStar is an active hedger, which means it tries to lock in
favorable rates over long periods.
NFI's stock is up 180% in the last 12 months. All this with a P/E of
only 8.56. I tell you these mortgage companies get no respect on the
street. This stock has mo babyâ¦it's r^2 correlation coefficient is
0.85 over the last 6 months. Yup..a straight stairway to heaven.
If you look at NFI's earnings profile, it made $2.07 last quarter.
Since we don't see the economy heating up until at least the 4th
quarter, interest rates should stay very low. This will enable NFI
to make a ton of money this year. $$$MR. MARKET$$$ projects earnings
of $9.76/share. This means NFI, with its modest P/E of 8.56, will
still get to a share price of $83.55 by the end of the year, well
past my sell target of $59.40.
Not that I ever care about what the experts think, but:
PortfolioGrader.com, published by Louis Navellier, who also publishes
MPT Review and Blue Chip Growth Letter. Navellier currently gives NFI
a grade of "A" on an A-to-F scale, up from "B" in early February.
Dow Theory Forecasts, edited by Richard Moroney (no relation to Bart
Moroney who eats for the cycle), also has increased its rated of NFI.
This newsletter's "Quadrix" stock rating system currently gives the
stock an overall score of 99 on a 0-to-100 scale, which is higher
than the score given currently to any other stock.
Revenues for NFI have grown 250% over the last 2 years. Their
brokers are sa â mokin babeeeeeeeeee!
Wait..I didn't even get to the good news yet. NFI paid a dividend
last year of $6.08/share. That's right..6 bucks. That's a 12% yieldâ¦
woo hoooooâ¦more money! They paid $2.25 last quarter for crying out
loud. This company is swimming in cash. With the new tax laws, this
is even better for NFI investors!
NFI return on equity is 27%.
If all of this is too good to be true, it probably is. NFI's shell
game can't go on forever. Competitors are going to want to get in on
this. As their loan portfolio gets bigger and bigger, their
outstanding receivables are going to get bigger and bigger, thus
their default risk will weigh heavier on their balance sheet. The
good news is that the market probably recognizes this risk and that's
why Wall Street only rewards NFI with a P/E of 8.56. I'm only taking
this for a short ride, and I don't see anything fundamentally
different in the economy over the next couple of months. For now,
NFI is an incredible money machine.
OK..let's hear what the boss says:
"Our performance is on track with the goals we outlined for
2003--expanding our portfolio of mortgage-backed securities with
attractive, risk-mitigated returns by funding a growing number of the
nation's home mortgage loans," said Scott Hartman, Chief Executive
Officer. NovaStar expects earnings for the full year to total
between $7.50 and $8.00 per share (SANDBAGGERS!) , as compared to
previous full-year guidance of between $7.00 and $8.00 per share.
"First-quarter production was in line with our previously stated
goal to originate between $4 billion and $6 billion of non-conforming
loans in 2003," Chief Operating Officer Lance Anderson said. "Our
goal is for NovaStar's growth in nonconforming loans to outpace the
growth of the nonprime market."
Mr. Anderson added: "We opened 30 affiliated branches, reaching a
total of 246 branches nationwide. And it's very important to note that
22% of the non-conforming loans originated in our wholesale business
were taken from our branches, compared to 17% in the fourth quarter.
Fifty-six percent of our conforming loans were originated in our
branch offices. Our goal is to increase market share for all of our
operations in 2003, and we're off to a great start."
I think $$$MR. MARKET$$$ is off to a great start as well. I am
HUGE!! Bring me your finest meats and cheeses!
$$$MR. MARKET$$$
http://groups.yahoo.com/group/mrmarketishuge/
Quote from GreenDog:
you're hung like a damn squirrel!!
Meats and Cheeses all around, baby!!!
lololololololollolololololollololololollo
awwww you are so nice
