ncx.to up 300 percent today -- nova pulled as a public company, shareholders fleeced

Quick Nova finacials
-- lost 48 million for 08, really made 100 million for 08, a special inventory write down to new lower prices, caused a 150 million depreciation, causing the loss on the year.

-- Nova paid down debt of quarter of billion, so was lowering debt. Also Nova has liquidity of a half a billion, and liquidity increased. Total debt around 1.6 billion.






Nova increased from a one dollar and seventy cents, to over 5 dollars in Toronto today
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
The Nova Chemical Company, trading under NCX.TO, is an example of the importance of developing GAAP to account and measure the use of credit and leverage. Public companies can be made strong by embracing methods to cover recession leverage pitfalls.

If a company borrows is dependent on refinancing. The financial meltdown, interupted Nova's debt programs. GAAP needs to have in its design, more than one type of balance sheet, to represent the leverage investment journey and pitfalls. [The company Nova's webpage and Nova's Sedar posting very lacking on the move to buy out the shareholders of nova for two dimes on the dollar. Shareholders invested into Nova, as deserve rights.]

Nova is an excellant example of a public company that had good earnings history. Traded from 28 five years ago to a high of 60 to 30 again then 25 to 30, then flopped to 1.70 in the world market failure. Fleecing from shareholders to have this company fail.

This can be averted, by having public companies, building special liquidity trusts, seperate from operations, to deal with and avoid anticipatory default. Basically shareholders must demand balance sheet stats that value leverage realities.





~~~~~~~~~~~~~~~~
--had puts on nova at 58, went to 60 plus, then dropped, doubled, sold, and went down more, could have done better


-- nova calls from 34 to 35, made 25%

-- nova calls from 26 to 30 doubled

-- nova calls 25 to 28 doubled

----lost on calls on nova 25, made 25 percent did not sell, then cliff

~~~dropped to 1.70,



Fleecing of a good stock, public companies eaten in bad times

~~~~~~~~~~~~~~~~~~~~~~~~
[NOVA news release. A billion and half debt would seem not so bad for a company that makes almost a million every two days, in good times.]

"CALGARY, Alberta (Reuters) - Abu Dhabi state-owned International Petroleum Investment Co launched a $500 million takeover of Nova Chemicals Corp (Toronto:NCX.TO - News) on Monday, a friendly deal to rescue the plastics maker from a financial crisis due to its high debt. [What is a win for executives of Nova, is a sell out of common shareholders.]

Nova shares, which had lost 95 percent of their value as industry conditions worsened over the past year, quadrupled to C$6.76 on the Toronto Stock Exchange after the firms announced the deal. Nova's New York-listed stock surged $4.06, or 303 percent, to $5.40.

IPIC will offer $6 a share for Nova. With assumed debt, the deal is valued at $2.3 billion.

The stock has been beaten down as demand for commodity chemicals -- used to make everything from food packaging to building materials to electronics components -- withered with global economies. Investors fretted over the company's ability to meet its debt obligations. [Debt obligations and leverage issues, of borrowing.

Nova Chief Executive Jeff Lipton said the company, which has operated independently for 11 years, had pored over several options to remain afloat before agreeing to be bought by IPIC.

Lipton, known for his unbending optimism about the chemical industry, said demand for products has increased, but investors remained fixed on Nova's financing struggles.

"Having been through it, I would tell you the banks, the markets, the financial world are in real turmoil," he told analysts. "But if you can find investments that, once they get beyond the issues -- and most of them will -- have truly outstanding fundamentals, it seems to me that you ought to be thinking about that as investors and not just the short-term concerns."

The deal will allow Nova to strengthen its balance sheet so it can keep operating and expanding, the companies said. IPIC agreed to give Nova a $250 million backstop facility to improve its liquidity.

Meanwhile, Nova won a new $150 million credit facility with Export Development Canada on Sunday, allowing it to meet a key debt commitment before month-end. [Nova could have created an trust made to deal this. Public companies need to make trusts to specifically cover debt obligation hurdles. Getting public companies to over leverage fleeces shareholders.]

Nova has plants in Canada, the United States and Europe that make ethylene, polyethylene, styrene and its derivatives. It is based in Canada but has its executive offices in Pittsburgh, Pennsylvania.

IPIC said Nova's assets will complement its own in Europe, the Middle East and Asia.

The deal marks the latest in a string of Canadian acquisitions for Abu Dhabi companies, although most have been in the oil and gas production business.

Nova's marquee asset is the Joffre ethylene and polyethylene complex in central Alberta, one of the world's largest. It is seen as strategically key because of a low-cost supply of the feedstock ethane.

Lipton estimated that facility is worth $5 billion alone." [No shit.]



news release on ncx
~~~~~~~~~~~~~~~~~~
NOVA Chemicals Corp. announced Thursday it posted a loss of $214 million, or $2.56 per share, in the fourth quarter of 2008. That's down from the profit of $126 million, or $1.51 per share, the chemical company posted in the year-ago quarter.
[Writing down inventory at the new lower prices, big part of loss. Division was profitable before meltdown.}


For full-year 2008, NOVA (NYSE: NCX), posted a net loss of $48 million, or 57 cents per share, compared to a profit of $347 million, or $4.16 per share, for full-year 2007. [Losses not that bad then if 48 million loss, so made 150 million, not including depreciation. Sold for 500 million, means sold for one and half times last year's earnings.]

Lowered demand for its plastic resin products affected the company during the quarter, but CEO Jeff Lipton said NOVA saw an uptick in demand late in the year.

"The company generated strong cash flow, increased its liquidity and reduced debt by $290 million in the quarter, despite a large feedstock cost dislocation and low polyethylene order levels in October and November," Lipton said in a statement. "Customers ran very low on inventory and polyethylene sales volumes rebounded strongly to the highest level in our history for the month of December, and our second best month ever."
[Business increasing, and yet shareholders, that invested and made this company are being fleeced of this public company. Nova was an excellant candidate for the Canadian Federal Reserve to help make solid again. Recovering the stock market by aiding quality. Key ball handling for SEC Canada and shareholder lobby groups, are to make sure good p/e public companies are not scooped up. Very important for stock market recover.]




~~~~~~~~~~~~~~~~
NOVA Chemicals Corp. announced Thursday it posted a loss of $214 million, or $2.56 per share, in the fourth quarter of 2008. That's down from the profit of $126 million, or $1.51 per share, the chemical company posted in the year-ago quarter.

For full-year 2008, NOVA (NYSE: NCX), posted a net loss of $48 million, or 57 cents per share, compared to a profit of $347 million, or $4.16 per share, for full-year 2007.

Lowered demand for its plastic resin products affected the company during the quarter, but CEO Jeff Lipton said NOVA saw an uptick in demand late in the year.

"The company generated strong cash flow, increased its liquidity and reduced debt by $290 million in the quarter, despite a large feedstock cost dislocation and low polyethylene order levels in October and November," Lipton said in a statement. "Customers ran very low on inventory and polyethylene sales volumes rebounded strongly to the highest level in our history for the month of December, and our second best month ever."
[Second best month ever and the public company tells shareholder the company is bankrupt, and has to be sold. Nova excutives win large retirement pay-off packages, nova shareholder loss. Swindle.]