Hi Noblesse,
Are you still out there? I'm somewhat worried about you with the recent price action in both TFS and SMU -- believe me, I feel your pain, and have averaged down as much as I prudently can. Well, maybe a *bit* more than would be prudent. <G>
In any case, I'm curious about your take on the conference call and this quarter's performance. I missed the call, but it sounds like there was at least one irate analyst/investor on the line. Anyone of import? I'd hate to see us actually lose coverage!
Personally, I think the quarter was very disappointing. Had management not accounted for the rail and mass transit operating loss in "discontinued operations," operating earnings would have been (.14) on a diluted basis. Had there even been any public discussion of divesting these businesses before, or was this a not too subtle attempt to prop up disappointing numbers? Strategically, I like them focusing on the more promising divisions and reducing debt; I just think the timing of the announcement of the intent to sell was unfortunate.
What will it take to move this stock before next quarter's earnings announcement? A few months ago, I would have thought new orders would lift us to higher levels, but we've fallen back to where we were before the TRW announcement. Maybe the identity of ITS customer #2 will be a catalyst. Since that customer will begin getting deliveries this quarter, I expect we'll get some kind of press release. Or maybe there is no substitute for delivering the earnings that everyone expects. Not the answer impatient investors want to hear -- I just hope I don't join those ranks before realizing (financially) some of the incredible potential I think this company has!
As always, your insight is most appreciated.
Lisa |
