| Rooky, I have been expecting SG&A to level off and even decline as the bond portfolio unwinds. I am not privy to what exactly is required to manage the existing portfolio and what minimum amounts are required even as income declines, BUT, as with any business, when your "book" decreases, adjustments are normally made to your expense side as well. Yes, there are some new people onboard for seeking out and enhancing new endeavors. I have also noticed, if you look at the employee roster at the new subs (linkedin is a good resource for this) that there are many FORMER Novastar employees working for the subs (some of them as regional salespeople for the growing Streetlinks brand). So, some of the past expenses are shifting to the subs, where the income is, slowly but surely. And, as for Streetlinks, my latest projection is $220M for the year or a near doubling of business, and after the massive start-up expenses of 2011, I am hopeful that the margins will be a bit higher, liker 7-8% instead of 5.5%. Watch Q1: 18.9M in 2011 (the slowest quarter of the year). If it doubles, as I expect, based on increased employee counts and busy parking lots, and reaches the level of Q4 2011, my projection should be right on. |
