Reason for NOPT move
IMO, tax loss selling and the extremely tight capital markets of Nov. and Dec. pushed NOPT down to the $4-6 range. All the carriers were pounded-AT&T, Worldcom, Sprint, Global Crossing, etc. Then, the New Year hit, Greenspan cut rates 50%, the junk bond market took off, and telcos came back strong. We also have a migration down from large to mid to small to microcaps among the funds-this happens often in January and is in part, the January effect. Anyway, NOPT needs to borrow maybe $80 million to continue their buildout and operations until a hoped for EBITDA breakeven. Now, as opposed to December, it looks like the capital markets will be available to them. A small cap, thinly traded stock like NOPT can be extremely volatile. Enjoy the ride. Disc. Very long NOPT. |
