SEC FORM 4

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

OMB APPROVAL

OMB Number:			3235-0287
Estimated average burden
hours per response:			0.5

Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

1. Name and Address of Reporting Person^*

BARMORE GREGORY T

(Last)

(First)

(Middle)

8140 WARD PARKWAY

SUITE 300

(Street)

KANSAS CITY

64114

(City)

(State)

(Zip)

2. Issuer Name and Ticker or Trading Symbol
NOVASTAR FINANCIAL INC [ NFI ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

X	Director	10% Owner
	Officer (give title below)	Other (specify below)

3. Date of Earliest Transaction (Month/Day/Year)
04/29/2004

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	Amount	(A) or (D)	Price		6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
NovaStar Financial, Inc. Common Stock	04/29/2004	04/29/2004	P		1,250	A	$1.53	204,809	D
NovaStar Financial, Inc. Common Stock	04/29/2004	04/29/2004	P		642	A	$0	205,451	D
NovaStar Financial, Inc. Common Stock	04/29/2004	04/29/2004	P		1,250	A	$4.175	206,701	D
NovaStar Financial, Inc. Common Stock	04/29/2004	04/29/2004	P		642	A	$0	207,343	D
NovaStar Financial, Inc. Common Stock	04/29/2004	04/29/2004	P		2,500	A	$7.91	209,843	D
NovaStar Financial, Inc. Common Stock	04/29/2004	04/29/2004	P		1,010	A	$0	210,853	D
NovaStar Financial, Inc. Common Stock	04/29/2004	04/29/2004	P		1,250	A	$12.965	212,103	D
NovaStar Financial, Inc. Common Stock	04/29/2004	04/29/2004	P		446	A	$0	212,549	D
NovaStar Financial, Inc. Common Stock	04/29/2004	04/29/2004	P		1,250	A	$3.375	213,799	D
NovaStar Financial, Inc. Common Stock	04/29/2004	04/29/2004	P		642	A	$0	214,441	D

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	8. Price of Derivative Security (Instr. 5)		10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
Stock Option	$3.375	04/29/2004	04/29/2004	X			1,250	06/09/2003	06/09/2009	NovaStar Financial, Inc. Common Stock	1,250	$3.375	11,250	D
Stock Option	$1.53	04/29/2004	04/29/2004	X			1,250	05/26/2003	05/26/2010	NovaStar Financial, Inc. Common Stock	1,250	$1.53	10,000	D
Stock Option	$4.175	04/29/2004	04/29/2004	X			1,250	05/25/2003	05/25/2011	NovaStar Financial, Inc. Common Stock	1,250	$4.175	8,750	D
Stock Option	$7.91	04/29/2004	04/29/2004	X			2,500	02/11/2004	02/11/2012	NovaStar Financial, Inc. Common Stock	2,500	$7.91	6,250	D
Stock Option	$12.965	04/29/2004	04/29/2004	X			1,250	05/30/2003	05/30/2012	NovaStar Financial, Inc. Common Stock	1,250	$12.965	5,000	D

Explanation of Responses:

	Gregory T. Barmore	04/30/2004
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.