NovaStar Financial, Kansas City, Mo., saw its share price rise 16% Monday after the company reported that quarterly earnings rose and it had clarified a previously disclosed tax issue.A few weeks ago, the share price of the subprime lender was clobbered after it said it needed to clarify certain "tax issues." The lender -- which has not explained publicly what those tax issues entail -- is expected to discuss the situation Tuesday during a conference call on fourth-quarter earnings. On Monday its shares jumped $4.32, closing at $30.71. It earned $26.4 million in the fourth quarter (up 16%), and $132 million for all of 2005 (up 21%). It ranks 17th among subprime funders, according to the Quarterly Data Report, a MortgageWire affiliate.

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