New Century Stock Resumes Slide; GE Unit Curbs Loans (Update4)
March 9 (Bloomberg) -- New Century Financial Corp.'s stock fell for a second day, hitting its lowest level in more than eight years, as Merrill Lynch & Co. analyst Kenneth Bruce predicted the mortgage company will go bankrupt.
Talks with lenders to save Irvine, California-based New Century aren't likely to succeed, Bruce wrote in a report today. New Century, the second-biggest U.S. ``subprime'' mortgage company, said yesterday it won't make any more loans as it tries to replace credit lines revoked by its backers. The shares tumbled 66 cents, or 17 percent, to $3.21 as of 4:26 p.m. in New York Stock Exchange composite trading. They traded as low as $2.96, the least since October 1998.
The company's ``next disclosure is likely a bankruptcy filing,'' Bruce wrote in a report today that carried a ``sell'' rating.
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