Naked-shorting poster child/terrible company Novastar Financial (NYSE: NFI) has finally lost three of its top executives as it continues to flounder on the brink of bankruptcy.
Not so long ago (and by not so long ago, I mean 90%+ of the company's value), Novastar shareholders were blaming the company's sagging share price on naked short sellers.
Of course that turned out to be baloney, as the company was poorly-run enough to collapse on its own lack of merit -- no conspiracy theories needed!
What's fascinating is that it took so long for the chairman/CEO and CFO who presided over such destruction of value to resign to spend more time with their families.
If only Novastar shareholders had devoted more time to monitoring the company and holding management accountable instead of going off on loony conspiracy theories, this might have ended better.
When a stock declines from a reverse split-adjusted $250 per share down to $3.41 before heads roll, corporate governance and accountability are a serious problem.
Novastar Financial's top executives finally leave
Posted Dec 20th 2007 5:14PM by Zac Bissonnette
Filed under: Major movement, Management, NovaStar Financial (NFI)
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Reader Comments (Page 1 of 1)
12-20-2007 @ 7:31PM
Don said...
Zac B.: Your comment really scares me. Are you saying that the whole problem at Novastar was caused by these three individuals? Did their actions also cause the problems at all the other financials?
If these three people were able to wreak such havoc, why did no-one else at the company act to stop them? Were they so powerful and fearsome?
I ask, as a stockholder, what should I have done to correct the management problems? Why did you not do anything?