Herschel,
Agree with your post. As for interest rates, I was just thinking how NITE ran up some 5 or 6 points the day that the Fed said it was adopting a neutral bias (along with its 1/4 point rate increase). Since then, NITE has been falling as bonds have backed up and as a potential Fed increase has been priced into the market. Clearly, this stock is very interest sensitive.
That said, you can't get around the fact that NITE is growing revenues at a rapid clip, yet it has been reduced to a forward p.e. of some 15. Heck, earnings are growing far faster than the p.e. multiple, so it seems a no brainer to me vis-a-vis long term prospects.
So, let there be another rate increase, or interest rate fears, and let NITE be pressured down again to under 30. Then load up the boat for the ride up. (Incidentally, we just had still another day with NASD volume near 1 billion. That kind of volume day after day in August rather helps 3Q revenues, or so one would think).
Gary Korn |
