After 10 Years, NetBank.com Finally Goes Bustposted by MR WAVETHEORY at 9/19/2007 05:18:00 AM
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"