NovaStar Financial: A Short Seller’s Battle

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NovaStar Financial: A Short Seller’s Battle

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Publication Date:
March 13, 2013

Source:
Harvard Business School

Industry:
Telecom

Industry:
Financial service sector

The NovaStar case describes the challenges faced by short seller Marc Cohodes of hedge fund Rocker Partners as he tried to expose what he thought was widespread fraud in mortgage lender NovaStar Financial. The case is set in the time period from 2001 to 2007 and tracks the growth of the subprime industry and its collapse leading to the financial crisis. The case describes the business model of NovaStar, a leading subprime mortgage lending company, and its accounting practices with a focus on the key risks and opportunities facing the company. The case requires students to put themselves in the shoes of Marc Cohodes in order to understand the business model and accounting numbers and to identify if the financial performance is a good representation of the true economic performance. In particular, students learn accounting concepts related to securitization, gain on sale accounting, valuation of available for sale securities, and analyzing the statement of cash flows. The case also allows students to understand the roles and incentives of various capital market participants such as sell-side analysts, the media, auditors, and the Securities and Exchange Commission (SEC).

Copyright © 2021 Harvard Business School Publishing. All rights reserved. Harvard Business Publishing is an affiliate of Harvard Business School.

NovaStar Financial: A Short Seller’s Battle

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From Admin and Read More here. A note for you if you pursue CPA licence, KEEP PRACTICE with the MANY WONDER HELPS I showed you. Make sure to check your works after solving simulations. If a Cashflow statement or your consolidation statement is balanced, you know you pass right after sitting for the exams. I hope my information are great and helpful. Implement them. They worked for me. Hey.... turn gray hair to black also guys. Do not forget HEALTH? Skill Improvement is without a doubt the number 1 significant and chief factor of gaining true achievements in most of occupations as you actually spotted in some of our the community and additionally in Across the world. Which means fortuitous to talk about with you in the following pertaining to whatever flourishing Competence Progression is;. exactly how or what solutions we work to attain wishes and in due course one could get the job done with what someone prefers to undertake just about every working day for a 100 % lifestyle. Is it so good if you are ready to develop properly and obtain achievements in whatever you thought, aimed for, self-disciplined and worked hard any working day and surely you turn out to be a CPA, Attorney, an owner of a great manufacturer or perhaps even a healthcare professional who might seriously add great guide and values to some people, who many, any modern society and society definitely esteemed and respected. I can's believe that I can assist others to be main skilled level who seem to will lead significant solutions and relief values to society and communities now. How completely happy are you if you turn out to be one like so with your own personal name on the title? I get arrived on the scene at SUCCESS and defeat all of the the really hard components which is passing the CPA qualifications to be CPA. Moreover, we will also handle what are the problems, or various other situations that can be on a person's method and how I have personally experienced them and will certainly demonstrate to you how to conquer them.

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