Analysts have given a cautious thumbs-up to Advanta Corp.'s new strategy, saying it will help the company through the current liquidity crisis in the home equity sector.

Advanta of Spring House, Pa., said in late October that it was dramatically reducing its use of gain on sale accounting. The controversial method requires lenders who securitize loans to estimate how they will perform, and it has caused writedowns at many home equity companies where expectations were not met. Investors have fled the sector, and stock prices have plummeted.

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