Bear Stearns analysts upgrade New Century (2007)

The potential downside in the stock if the company is forced to sell or liquidate is roughly balanced with the potential upside.

~ Scott Coren and Michael Nannizzi, analysts at Bear Stearns, from a research note, "New Century upgraded at Bear Stearns," MarketWatch, March 1, 2007

(The two analysts lifted their rating on New Century to peer perform from underperform. Shares climbed almost 3% to $15.78 during afternoon trading Thursday. They've still slumped almost 50% so far this year due to signs of a credit crunch in the subprime-mortgage industry.)

Merrill Lynch analyst concerned about liquidity drying up for New Century

Finance companies that go out of business usually do so because of a lack of liquidity.

Investors and warehouse lenders could lose confidence in New Century. New Century's business model is highly reliant on liquidity, so if investor confidence deteriorates and credit facilities are constrained, a liquidity event could ensue.

New Century's accounting issues and deteriorating fundamentals at its lending operation could put it at a steep downward slope, in our view, and we are more concerned that liquidity issues and adverse market reactions could undermine its business model and financial stability even further.

~ Kenneth Bruce, Merrill Lynch analyst, from a note to clients on Feb. 8, "Big banks control fate of subprime lenders," MarketWatch, February 16, 2007

(Merrill Lynch downgraded the stock to a sell.)