« Home | Farmers Shouldn't Play with Credit Derivatives! » | Fed Rate Cut Extends Lifeline to Deadbeat Borrower... » | Wesco Annual Meeting Notes 2007 » | New Apple iPOD Nano Commercial » | Setara Qassim Is Too Sexy To Fly » | Shanghai World Financial Center Looks Like a Giant... » | Northern Rock Goes Bust - Customers Run on Bank » | OMG! EONS is RUN BY MORONS » | There is No Vanessa Hudgens Sex Tape LOL! » | Goldman Sachs Global Alpha Blows Up Again! »

September 19, 2007

After 10 Years, NetBank.com Finally Goes Bust

posted by MR WAVETHEORY at 9/19/2007 05:18:00 AM
A few months ago, I wrote about NetBank Inc. (NTBK.PK) as a short trade because it had lost $200 million. Of all things, it lost it on RV loans. Let me translate that for you. RV loans = trailer park loans. The less PC bankers of the financial community would call these "trailer trash loans" because they are made to borrowers who live in trailer parks and have no chance of repayment. It turned out to be completely accurate. As it turns out, that short trade was a "SHORT TO ZERO" trade, because the stock of NetBank is now worth $.08. You are reading it correctly. 8 cents. It is down from $3.59 on the day that NetBank announced its $200 million write off! And over $80 at the peak of the dotcom mania back in 1999.

Of all things, NetBank shows everyone out there that the writing was on the wall on this whole subprime mortgage loan crisis way before last month. The weak players were already crumbling 6 months ago, except that the people who had the data didn't really want to face the facts.Example: EverBank didn't face the music and signed a term sheet to acquire NetBank's $2.5 billion loan portfolio in May. It turns out EverBank was lucky. The closing conditions were not met and there were little in the way of closing conditions except regulatory approval by a certain date. No regulatory approval = no liability. See no evil. Do no wrong. EverBank got out of jail scott free! I bet Everbank investors are breathing a sigh of relief. They really dodged a bullet on this piece of trailer trash.

The more adventurous of you are wondering whether this is a nice penny stock trade. The answer is in NetBank's regulatory filing :

As a result of ongoing financial and regulatory pressure, the Company believes that its outstanding common stock may have little or no value. Accordingly, investment in the Company’s common stock would be highly speculative.


You have to give these guys credit. At least the management team is finally learning to be honest about something! It took them over 10 years, but they finally learned!

NetBank RIP. I have a suggestion for your tombstone. Take the logo and change it to "NetBank : Part with Your Hard Earned Money"

Previous Posts

2 Comments:

Blogger Dr Purva Pius said...

Hello Everybody,
My name is Mrs Sharon Sim. I live in Singapore and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of S$250,000.00 to start my life all over as i am a single mother with 3 kids I met this honest and GOD fearing man loan lender that help me with a loan of S$250,000.00 SG. Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs Sharon, that refer you to him. contact Dr Purva Pius,via email:(urgentloan22@gmail.com) Thank you.

BORROWERS APPLICATION DETAILS


1. Name Of Applicant in Full:……..
2. Telephone Numbers:……….
3. Address and Location:…….
4. Amount in request………..
5. Repayment Period:………..
6. Purpose Of Loan………….
7. country…………………
8. phone…………………..
9. occupation………………
10.age/sex…………………
11.Monthly Income…………..
12.Email……………..

Regards.
Managements
Email Kindly Contact: urgentloan22@gmail.com

1:54 AM  
Blogger Osman Mohammed said...


$$$ GENUINE LOAN WITH 3% INTEREST RATE APPLY NOW$$$
Do you need finance to start up your own business or expand your business, Do you need funds to pay off your debt? We give out loan to interested individuals and company's who are seeking loan with good faith. Are you seriously in need of an urgent loan contact us.
Email:flourishloancredite@gmail.com
LOAN APPLICATION DETAILS.
First Name:
Last Name:
Date Of Birth:
Address:
Sex:
Phone No:
City:
Zip Code:
State:
Country:
Nationality:
Occupation:
Monthly Income:
Loan Amount:
Loan Duration:
Purpose of the loan:
where did you hear about us;
Email:flourishloancredite@gmail.com

9:47 AM  

Post a Comment

Links to this post:

Create a Link

<< Home