Well, I am not adding. I reached my limit of 2% of the pf on a single stock back when it was around $1.80, and I want to keep the discipline, although I too am tempted.
As I have said before, the 3rd quarter was OK as far as cash flow, but the banks are probably playing rough, understandably given the credit crisis we are in right now. There is a distinct possibility that the banks will demand a long term distribution halt until a substantial part, if not all, of the bank debt is paid. After they pay off the $40 million tomorrow, presumably with asset sales, there will be about $140 million of bank debt left. Assuming they can pay $55 million a year while preserving necessary capital expenditures, it will take almost 3 years to repay all the bank debt. In this case, the obvious move would be to sell ENT to somebody.
I think we will learn about all this Wednesday. One thing that is somewhat worrying is that in the past, good future news were preceded with positive stock action before the news appeared. Based on the stock action, the news are neutral to negative, or ENT learned to keep the news under a very tight wrap. |
