Shares of Southern Pacific Funding Corp. have fallen more than 50% since the subprime lender said late last week it may report a loss for the third quarter and the year.

Southern Pacific said in a filing with the Securities and Exchange Commission that it would need to revalue securitized loan pools, forcing the loss.

The company's stock closed at $2.187 on Tuesday, down from Friday's close of $5.187. Southern Pacific stock has been declining fairly steadily since April 24, when shares reached a high of $18.75.

Southern Pacific has been on the sale block since July. Like many subprime companies, it is hoping to find a partner that can provide it with a cheap funding source.

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