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Why is NOVC still shorted per otcshortreport.com? Especially when powerful investors Mass Mutual Barings 19.3M, Fortress/SoftBank, EJF Capital/White Mountains 31.3M & DX MREIT pros 36M Thomas Akin, Barry Igdaloff w/ coown 86M 75% of 114M CSOS per S-8

Feb. 02, 2021 10:35 AM ETDynex Capital, Inc. (DX)NOVCQ, RITM, SNR, GCI
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  • If NOVC duplicates Fortress' restructuring from Newcastle Inv Corp NCT at NOVC they stand to turn almost no cash into Billions & reap every year 100Ms in dividends/Mgt Fee.
  • Igdaloff ex-DX Board member CoB & his family stand to make $400M + collect tens of thousands qtrly at NOVC like Dynex Capital thanks to Fortress restructuring.
  • Mr. Wesley Edens spelled it out in his own DS Shareholder Presentation at NCT aka DS Dec 2016 Read Slide 4-5. http://ir.driveshack.com/Cache/IRCache/a1b2ee64-5797-45c5-953a-7aed241fbd80.PDF?O=PDF&T=&Y=&D=&FID=a1b2ee64-5797-45c5-953a-7aed241fbd80&iid=4040318
  • NOVC can separate Novastar Financial tax-exempt ex MREIT again & use collateral assets from CCR per Service Rights Transfer Agreement sec 5.04 NOVC mislead w/ FMV for CCR when it is plans for CCR that matter
  • NOVC can position the 2nd co www.healthcare-staffing.com as SPAC but with $730M NOLs five times the NOLs left at Drive Shack $DS.

Why is NOVC still shorted per www.otcshortreport.com Maybe someone is selling short and they or someone in their cabal maybe buying, net neutral just to suppress the share price to repel other investors until they are ready to move and to justify taking 43M shares at pennies or less (half their 86.6M shares position) if you add Mass Mutual and sub Barings.

Chuck Gillman is on record 2014 just before his Nov 2014 call to Barry Igdaloff stating "We Whitney Tilson, Jeff Eberwein & the other members of his cabal Ben Large, John Climaco, Dillip Singh ex CEO of MRV Communications will not invest without Mass Mutual and Barings".

Maybe they are stupid shorts and do not understand Fortress and EJF Capital are the real economic owners of all NOVC Sr Debt because Barry Igdaloff allows them to hide their identities behind these CDOs Fortress behind Taberna I and II and EJF Capital behind Kodiak CDO One.

Is 43M shares at less than a penny a big deal. If they duplicate or cut and paste their restructuring at Newcastle at NOVC by separating Novastar Financial Inc. (ex NYSE symbol NFI) back out as tax exempt MREIT using CCR rich and seasoned collateral assets to leverage/resecuritize at NIMs 500 Bpts just like Fortress did at NRZ. They position www.healthcare-staffing.com with 730M NOLs like Drive Shack DS and the 43M shares at pennies could be worth $1.7B and reap dividends every year & Mgt Fees over hundred million just like they did at DX and NRZ.

12M RSU restricted stock units converting partial board compensation at pennies per share (which the Board has responsibility for engineering over 5 years since Chuck Gillman, Jeff Eberwein and their 3 placeholder appointments) into 12m shares almost 10% of 114m CSOS dilute. This is all on Barry Igdaloff Chairman of the Board. Remember NOVC Board Members Barry Igdaloff Chairman, Howard Amster, Gillman/Eberwein ex Board Members appointed after they were fined by SEC David Pointer, Lee Keddie, Tim Eriksen. https://www.sec.gov/litigation/admin/2017/34-80038.pdf Remember these Board members of NOVC have delivered no viable plan to use 730M NOLs and have at best mislead shareholders on any plans they may have for CCR. Duplicating Fortress' restructuring at Newcastle NCT aka Drive Shack DS accomplishes this in spades. So why has Barry Igdaloff, Chairman of the Board, after more than half a decade controlling NOVC Board since Spring 2015 been silent on these obvious plans? My only guess is to ripen Ch 11 and the spoils 43M shares at pennies.

If Igdaloff and Gillman and Wesley Edens/Peter Briger/Mark McGoldrick/Michael Huang, Manny Friedman/Neal Wilson/Frank Bazos, Bill Wallis and Thomas Akin of MassMutual Barings & the rest of their cabal members think NOVC shareholders will ever let them ripen or forget I suggest any NOVC shareholder with a pulse go to Reddit join for free /r/wallstreetbets and remind them of what these investors have done at Novation Companies, Inc. This is Braveheart Call - Reddit Rebellion for all investors to remind these rich, experienced investors led by Barry Igdaloff, Chuck Gillman/Jeff Eberwein and their co investors Note Holders Fortress, EJF Capital have ethical and moral duties to all shareholders not just themselves. Call them, write them, email them, show up at their homes if needed and remind them all.

31.3M NOVC Board gave to Note Holders mostly to Fortress, CoB Wesley R. Edens who owns 31.3M shares with pro Manny Friedman of EJF Capital. Both Edens and Friedman along with ex DX Board member Barry Igdaloff and Thomas Akin are WORLD CLASS experts in NOVC dormant MREIT, CCR ot most of $3B collateral assets, $730M NOLs.

Fortress' Co-CEO and Chairman of the Board Wesley Edens flew to Columbus OH and discussed restructuring DX with Todd Emoff and Barry Igdaloff. This included ousting Thomas Potts as CEO DX. I know because I have on record from both Todd Emoff (read Igdaloff own book Guest in Nightmare for their very close friendship that goes back to College) and Barry Igdaloff out of their own mouths, that this is fact. Further Igdaloff was chatty that day and explained how Wesley Edens, COB of Fortress concealed his/Fortress identity behind CMO Capstead Mortgage which owned 2000-03 controlled over Dynex Capital NYSE $DX, Glen Allen, VA also the home of DX law firm Hunton & Williams. Hunton and Williams somehow represented the General Council the Creditors Committee in NOVC Ch 11 which was controlled by Wesley Edens, CoB of Fortress. Fortress owned via CDO Service Rights most of NOVC only Sr Debt to exit formal Ch 11 with 6.3M with no cram down. I read the 40 page Engagement Letter Hunton & Williams submitted to Ch 11 Judge Davis and only one DX investor was noted on the conflict of interest page and that one person was Barry Igdaloff. Could Hunton & Williams or should Hunton & Williams have known DX ex Chairman of the Board Thomas Akin owned the maximum shares 5M in NOVC and was the one of the largest shareholders in both DX and NOVC including his HF Talkot Capital. Should they have known Barry Igdaloff close friend Todd Emoff and his brother were major shareholders in both DX and NOVC. Pacer Monitor Reports on NOVC Ch 11 docs show Thomas Akin via (Akin holds his positions at DX, NOVC in both Talkot Capital his HF and for his loved ones in his own name. Akin and Talkot capital owned 13.4% of IMH Impac Mortgage Holdings a Non-QM Mortgage Lender which Fortress used to own. Thomas Akin via Talkot Capital increased his position at NOVC from 1.9M last time his HF Talkot Capital reported 13F on NOVC to 2.58M per Ch 11 docs. Why would Mr. Thomas Akin and his HF Talkot Capital increase by 600k NOVC shares his NOVC position during Ch 11 that by all accounts was a disaster leaving NOVC in Going Concern post Ch 11. Joel Sher at Shapiro Sher the famed Ch 11 lawyer that represented NOVC Board the Debtor accepted a Black Tie Award in a Shapiro Sher Press Release NOVC Ch 11. The M&A Magazine award was for NOVC being the " 2017 Turnaround of the Year Award" Someone should tell both Joel Sher and M&A Mag that NOVC post Ch 11 status as "Going Concern and 1 cts stock price" is far from placing NOVC back on Sound Financial Footing" read link https://www.shapirosher.com/news/shapiro-sher-wins-award-for-reorganization-of-novation-companies.

DX investors that own at least 36M NOVC shares (led by Chairman of NOVC Board Barry Igdaloff, Thomas Akin, Todd Emoff, Howard Amster's & Gillman/Tilson cabal) also include 31.3M shares given to Fortress. Fortress made these DX investors that control NOVC Board fortunes now they hold NOVC shareholders hostage with the fodder called Sr Debt hidden behind CDOs. Igdaloff and Amster failed to hold the 2020 annual meeting because they did not want to incriminate themselves by failing to not show their past co-investors from DX owns all of NOVC Sr Debt with EJF Capital and now 31.3

Analyst's Disclosure: I am/we are long NRZ.

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