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Strategies & Market Trends : Turnarund Investing

NOVS 0.0666

-16.0%

Aug 1 5:00 PM EST

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To: batman10023 who wrote (1806)	7/14/2012 9:37:52 PM
From: KyrosL	of 1876

SVU -- I have doubts about being able to sell pieces of the company. An offer could materialize for the entire company near the current low price, but it's low probability. What could an acquirer do that they are not already doing? I think they put the strategic review in the release as consolation to the stockholders for cutting the dividend. Agree that the dividend cut was something forced on them after the dismal revenue performance. If they did it on their own, they would not have eliminated it completely, thus forcing a bunch of their institutional stockholders to sell. Plus it was accompanied by the renegotiation of the bank credit lines. By the way, the last dividend announcement was rather late, so they were probably being pressured and watched by the banks for some time. When it was clear that some covenants were about to be violated, they were forced to act.

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