OMB Number 3235-0145
United States
Securities and Exchange Commission
Washington DC 20549
Schedule 13D
Under the Securities and Exchange Act of 1934
Novastar Financial, Inc.
Name of Issuer
8.90% Series C Cumulative Redeemable Preferred Stock
Title of Class of Securities
CUSIP Number 669947806
Howard Amster, 23811 Chagrin Blvd., Suite 200
Beachwood, Ohio 44122-5525, 216 595-1047
(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
May 3, 2007
Date of Event which Requires Filing of this Statement
If this filing person has previously filed a statement on Schedule 13G to
report the acquisition that is the subject of this Schedule 13D, and is
filing this schedule because of 240.13d-1(e) (f) or (g), check the
following box / /.
Note: Scheduled filed in paper format shall include a signed
original and five copies of the schedule including all exhibits.
See 240.13D-7 for other parties to who copies are to be sent.
*The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject to the
subject class of securities, and for any subsequent amendment containing
information which would alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities
Exchange Act of 1934 ("Act") or otherwise subject to the liabilities
of that Section of the Act, but shall be subject to all other provisions
of the Act (however see the Notes).
1 Name of Reporting Person Howard Amster
2 If a member group a) / /
b) /X/
3 SEC Use only
4 Source of Funds PF
5 Check if Disclosure
6 Citizenship U.S.A.
Number of Shares 7 Sole Voting 222,700
Beneficially
Owned By Each 8 Shared Voting 40,700
Reporting Person
With 9 Sole Dispositive 222,700
10 Shared Dispositive 40,700
11 Aggregate Amount Beneficially owned 263,400
12 Check if Aggregate Amount (11) Excludes Certain Shares
13 Percent of Class Represented by amount in row (11) 8.81 %
14 Type of Reporting Person IN
1 Name of Reporting Person Ramat Securities Ltd.
2 If a member group a) / /
b) /X/
3 SEC Use only
4 Source of Funds WC
5 Check if Disclosure
6 Citizenship U.S.A.
Number of Shares 7 Sole Voting
Beneficially
Owned By Each 8 Shared Voting 40,700
Reporting Person
With 9 Sole Dispositive
10 Shared Dispositive 40,700
11 Aggregate Amount Beneficially owned 40,700
12 Check if Aggregate Amount (11) Excludes Certain Shares
13 Percent of Class Represented by amount in row (11) 1.36 %
14 Type of Reporting Person BD
1 Name of Reporting Person David Zlatin
2 If a member group a) / /
c) /X/
3 SEC Use only
4 Source of Funds PF
5 Check if Disclosure
6 Citizenship U.S.A.
Number of Shares 7 Sole Voting
Beneficially
Owned By Each 8 Shared Voting 40,700
Reporting Person
With 9 Sole Dispositive
10 Shared Dispositive 40,700
11 Aggregate Amount Beneficially owned 40,700
12 Check if Aggregate Amount (11) Excludes Certain Shares
13 Percent of Class Represented by amount in row (11) 1.36 %
14 Type of Reporting Person IN
Item 1. Security and Issuer
Novastar Financial, Inc.
8.90 Series C Cumulative Redeemable Preferred Stock
CUSIP 669947806
Novastar Financial, Inc.
8140 Ward Parkway, Suite 300
Kansas City, Missouri 64114
816 237-7000
Item 2. Identity and Background
Howard Amster
a) Howard Amster
b) 23811 Chagrin Blvd., # 200, Beachwood, Ohio 44122-5525
c) Present principal occupation- Real Estate Operator
23811 Chagrin Blvd. # 200, Beachwood, Oh 44122-5525
d) Howard Amster has not been convicted in any criminal proceedings
(excluding traffic violations or similar misdemeanors, if any) within
the last five years.
e) Howard Amster has not been party to any civil proceedings of
a judicial or administrative body or competent jurisdiction of the type
described in Item 2 of Schedule 13D within the last five years.
f) U.S.A.
Ramat Securities Ltd., 23811 Chagrin Blvd., # 200, Beachwood, Ohio 44122
Securities Firm
David Zlatin and Howard Amster are the unitholders of Ramat
Securities Ltd., an Ohio Limited Liability Company.
David Zlatin is a 17 % owner/principal of Ramat Securities Ltd.
and has joint control of voting and dispositive power over all
securities owned by Ramat Securities Ltd. While David Zlatin
directly or indirectly does not beneficially own 5 % of
Novastar Financial 8.90 Preferred, he because of such voting and
dispositive power, might be deemed a beneficial owner of these
shares owned by Ramat Securities Ltd.
Howard Amster is an 83 % owner/principal of Ramat Securities Ltd.
and has joint voting or dispositive power over any securities owned by
Ramat Securities Ltd., but by being an 83 % owner can be deemed a
beneficial owner of all securities owned by Ramat Securities Ltd.
d) Neither the members or unitholders of Ramat Securities Ltd. have
been convicted in any criminal proceedings (excluding traffic
violations or similar misdemeanors, if any) within the last five years.
e) Neither the members or unitholders of Ramat Securities Ltd.
have been a party to any civil proceedings of a judicial or
administrative body or competent jurisdictions of the type described
in Item 2 of Schedule 13D within the last five years.
f) U.S.A.
David Zlatin
a) David Zlatin
b) 2562 Biscayne Blvd., Beachwood, Ohio 44122-1773
c) Present principal occupation- Principal, Ramat Securities Ltd.,
securities firm- 23811 Chagrin Blvd. # 200, Beachwood, Oh 44122-5525
d) David Zlatin has not been convicted in any criminal proceedings
(excluding traffic violations or similar misdemeanors, if any) within
the last five years.
e) David Zlatin has not been party to any civil proceedings of
a judicial or administrative body or competent jurisdiction of the type
described in Item 2 of Schedule 13D within the last five years.
For information purposes only
Clients and employees (excluding Mr. Amster and Mr. Zlatin)
of Ramat Securities own 9,000 shares of Novastar, Financial, Inc.
8.90 Series C Cumulative Redeemable Preferred Stock or
0.3 % of the Registrant's Preferred Stock.
Clients and employees (excluding Mr. Amster and Mr. Zlatin)
of Ramat Securities Ltd. do not have ownership, no shared
voting, no dispositive power, no pecuniary interest in
in any shares in Registrant's Preferred C shares nor
to any other securities owned directly or indirectly by
Ramat Securities Ltd. Clients and employees of
Ramat Securities Ltd. (excluding Mr. Amster and Mr. Zlatin)
disclaim being a member of this group.
Ramat Securities has no ownership, no shared voting, no
dispositive, no pecuniary interest in Registrant's shares nor
in any other securities owned directly or indirectly by its
clients or employees (excluding Mr. Amster and Mr. Zlatin).
Item 3. Source and Amount of Funds or Other Consideration
Howard Amster purchased in his individual retirement accounts
222,700 Series C preferred shares with personal funds without
borrowing. The total consideration for the purchases is
$ 3,431,106.08.
Ramat Securities Ltd. purchased 40,700 Series C preferred shares
with working capital without borrowing. The total consideration
for these purchases is $ 564,402.
Item 4. Purpose of Transaction
Howard Amster, Ramat Securites Ltd., David Zlatin acquired their
shares for purposes of investment and may be deemed to be a group.
There are no present plans or proposals by this group of record
or the beneficial owners as reported in this Schedule 13D which
relates to or would result in the following:
a. The acquisition by any person of additional securities of the
issuer, or the disposition of securities of the issuer provided, however,
the reporting persons might acquire additional shares or other securities
of the issuer or dispose of some or all of their shares depending upon
market conditions and their personal circumstances;
b. An extraordinary corporate transaction, such as a merger,
reorganization or liquidation, involving the issuer or any of its
subsidiaries;
c. A sale or transfer or a material amount of assets of the issuer or
any of its subsidiaries;
d. Any change in the present board of directors or management of the
issuer, including any plans or proposals to change the number of the terms
of directors or to fill any existing vacancies on the board;
e. Any material change in the present capitalization or
dividend policy of the issuer;
f. Any other material in the issuer's business or corporate structure;
g. Changes in the issuer's charter, bylaws or instruments corresponding
thereto or other actions which may impede the acquisition of control of
the issuer by any person;
h. Causing a class of securities of the issuer to be delisted from a
national securities exchange or cease to be authorized to be quoted in
an inter-dealer quotation system of a registered national securities
association;
i) A class of equity securities of the issuer becoming eligible for
termination of registration pursuant to Section 12(g)(4) of the Act; or
j. Any action similar to any of those enumerated above.
Item 5. Interest in Securities of the Issuer
Series C Preferred shares outstanding of the Issuer is 2,990,000 as
referenced in the 10-K for fiscal year ending December 31, 2006.
(a)(b) The aggregate amount owned by this Reporting Group is
263,400 Series C Preferred shares or 8.81 % of the outstanding Series C
Preferred shares.
Howard Amster in his individual retirement accounts owns
owns 222,700 Series C Preferred shares or 7.45 % of the outstanding
Series C Preferred shares.
Ramat Securities Ltd. owns 40,700 Series C Preferred shares or
1.36 % of the outstanding Series C Preferred shares.
c) Description of Transactions
All purchases were executed on a listed stock exchange
as an open market transaction.
Executing
Identity Date Shares Price Broker
Howard Amster 02/27/07 79,700 16.00 McDonald
in his Individual 02/27/07 28,400 15.99 Bear, Stearns
Retirement Accounts 03/07/07 9,800 10.16 Bear, Stearns
05/03/07 46,400 13.63 Bear, Stearns
05/04/07 14,800 15.79 Bear, Stearns
05/07/07 13,400 16.82 Bear, Stearns
05/08/07 23,000 16.72 Bear, Stearns
05/09/07 7,200 16.79 Bear, Stearns
Ramat Securities 02/26/07 5,400 16.51 Bear, Stearns
Ltd. 03/08/07 3,700 13.35 Bear, Stearns
05/03/07 31,600 13.48 Bear, Stearns
Item 6. Contracts, Arrangements, Understandings or Relationships
with Respect to Securities of the Issuer.
There are no contracts, arrangements, understandings or relationships
with respect to securities of the Issuer with any person except as set
forth in items 2, 3, 5 above.
Item 7. Material to be filed as exhibits.
None
Signature After reasonable inquiry and to the best of our knowledge
and belief, we certify that the information set forth in this
statement is true, complete and correct.
Date: May 10, 2007
/s/
Howard Amster
/s/
Ramat Securities Ltd.
By: David Zlatin
Title: Principal
/s/
David Zlatin