New Century Financial (NEW) is one of the latest real estate investment trusts that is on the brink of all out collapse. It is worth reviewing what management of NEW said during an earnings conference call back in November 2, 2006. Analyst Miguel Fidalgo of Noonday Asset Management asked if, in light of competitors revising their loan losses higher, NEW felt any need to revise their loan loss provisions for the upcoming quarter. Patti Dodge of NEW replied:
"...we have several years worth of losses built up in the current allowance for loan losses."
At the time, NEW had a closing price of $35.90. Today, NEW trades at $3.87. With such a brazen and flippant response, one has to wonder if the management team at NEW was thinking clearly at the time.
Source Citation: "Q3 2006 New Century Financial Corporation Earnings Conference Call - Part 2." The America's Intelligence Wire (Nov 2, 2006): NA. InfoTrac OneFile. Thomson Gale. San Francisco Public Library. 9 Mar. 2007
"...we have several years worth of losses built up in the current allowance for loan losses."
At the time, NEW had a closing price of $35.90. Today, NEW trades at $3.87. With such a brazen and flippant response, one has to wonder if the management team at NEW was thinking clearly at the time.
Source Citation: "Q3 2006 New Century Financial Corporation Earnings Conference Call - Part 2." The America's Intelligence Wire (Nov 2, 2006): NA. InfoTrac OneFile. Thomson Gale. San Francisco Public Library. 9 Mar. 2007
No comments:
Post a Comment