Mike, thanks. Believe it or not, I am also long NN. I admit my posts have been slanted toward the negative, but so has the share price. Why? Perhaps some of my posts can help explain why that share price has headed south recently. Its very easy to state, "Fidelity is selling". Well, Fidelity is selling, we suspect. But, selling into a market where there are few willing buyers, even among the "analyst faithful", one should question "why"? Perhaps most disturbing to me is that a not single analyst has emphatically pounded the table in support of Newbridge at these supposed bargain basement prices. And I mean pounded hard enough to bring out REAL institutional buyers.
On a positive note, the price action in the stock for the last few hours on Friday may indicate that selling pressure is easing. The stock staged a nice rebound on decent volume. Decent enough that I sold some protective puts I had against my long position at the close. I would like to see the stock now rise on a down DOW day (do we get these any more? <g>), and also see a re-iteration, once next week has passed. If we can get by next week with no pre-announce, then we should rise gradually until earnings. Any rise into earnings, IMO, will be tempered by lingering balance sheet issues. Remember people, its not just bottom line. Its top line growth, inventories, DSOs, and AR, too. I would contend that had all these "ducks been in a row" after the previous quarter, the current price picture would be very different.
Gary |
