High risk investment...Novastar...NFI

Bought some at 7.13 about a week ago. It's trading in the low 8's. This is the only PURE subprime lender left that trades. Fremont sold their subprime unit, Accredited got bought out, New Century is dead.

NFI just got a multi billion dollar line of credit from Wachovia. They also securitized all their loans yesterday...so they've dumped most of the loans they are holding.

I'm betting they'll get bought out in the next couple of weeks. My guess is Wachovia.

This is the type of thing you only put a bit of cash into...it's a double, or you're sitting on a 4 dollar stock hoping the housing market turns.