New Century Financial Corporation: Oops

Today, New Century Financial Corporation was all the news. Stock cratered. Straight down. Get ready for the dog and pony Congressional hearings show. I am sure there were accounting problems. If they violated the law, executives should get ready for their own version of HBO’s Oz. However, don’t complain if you are still holding the bag at $1.66 a share. There were clear warning signs in the price movement long before the meltdown. There were no excuses for not exiting, that is unless you were dollar cost averaging (losers average losers).