This is a followup on a previous blog we wrote, and believe it or not, this isn't by far the only equity we follow. It's just the one which has been consistently giving us the greatest returns on our investment, both long and short term. Yes, we are playing it both ways.
What it is offering us:
Was trading in the $2 range, then $7, and now $10 range looking at just the past few months. Trading in the $10 range is at a price/book of 0.69 making it remain a great value equity with a target price above $14. It was way over valued at over $60 a share in the past year and a half or so. A hedged strategy covering them on the up and down sides. Reasonable predictability for short term profit taking. ...and rock solid financial backing from the soon to be second largest investment banker, Wachovia.So who is this survivor who has outperformed their industry for several years?
None other than Novastar Financial Inc. (NFI). We try not to fall in love with any particular stock, so we continually check and recheck our research. But this one is still a good one for us to ride.
Note: The information contained within this writing is strictly the opinion of the writer, and is in no way intended as advice in any way, shape, or form for any particular investment or methods of investing. They are not endorsed by TradeKing or any other known brokerage. Furthermore, the writer believes that you should always look at your own investment objectives and you should never enter into any investment solely on someone elses' opinion.
