Frodo, I just don't see " NN getting spanked here ".
NN had a nice ride on the coattails of CSCO's earnings last Wed and
jumped to 35 15/16. Nice move. 36 was also an old
resistance level. So it is backing off. Normal.
It went down to breakout level of 32 and is now coming back.
And all this is happening on low volume.
Technically this is all good.
The reasons NN is down now have to do more with perception
and very little reality.
Perception:
-As Feb 22 approaches, and " no deal is announced ", some took
their profits.Fine, no big deal.
-Perhaps with the " improved outlook for NN, NN may not
want to be sold ". Pure speculation. We don't know what NN
will do. All of last 2 1/2 month activity still points
to fair weather ahead.
Reality:
a)NN is down because the Naz is tanking.
`
-Naz is tanking because oil has reached 10 year high and
there is no relief in sight.
-Naz is tanking because of higher interest rates and abstruse
PEs of stocks like CSCO and the inets.
-Naz is tanking because people are afraid of PPI and core
PPI coming up.
b)Above has no effect on NN in a fundamentsl way.
-NN has already corrected.
-It's PE is modest comparing other stocks.
-If the FFC's pronnunciation is interpreted correctly,
allowing RBOC s to get thigh deep into big time ATMs,
the sky is the limit for NN, because there is NO
competition in sight, and not for at least 2 years.
-NN is not going to make previous mistakes again IMHO:
It will outsource and build these ATM cupcakse as fast as
you can say " give me a dozen " ,I bet you,
TA |
