Michael, I'm basing my assertion about the quarter being "fluffed" up to .08 on the what I see on the balance sheet. Check out the receivables growth, inventory growth, and DSOs growth. These things were supposed to cleaned up this quarter. Why did they get so much worse, and we still did only .08, when we pre-announced .08 to .10?
And yes, I do think this management is dumber than rocks <g>. I believe they should have shown a loss this quarter like there probably was. Did I forget to mention the negative cash flow.
My takeout target, if it happens this quarter, is 27-28. About a 20% premium above the 20-23 range I expect the stock to stay in prior to any announcement.
In fact, I think the shareholders who wait and take ERICY stock after the merger close will yield more, since ERICY, will probably drag NN up with it, the same way LU dragged ASND up. But the initial ratio will yield 27-28, imo.
edit: BTW this 20% premium is really about a 50% premium from where the stock should be trading, around 17.
Gary |
