Feb 23rd 2007 11:23PM HEAVY short selling begets more selling, especially when the broader market is trending higher (there aren't a lot of good stocks to short).
NFI's break below 30 (12/15/06) looks very much like Enron's chart from September 2001 to the single digits. Many of those who would normally buy the dips have been frightened away.
I don't follow NFI's accounting or underwriting criteria, but it seems that fraud would be a necessary precursor to any banko filing.
Never try to catch a falling knife.