Dave-
It's hard to imagine NCES trading below $4.5, but I make no guarantees. NCES is not affected by any of the economic turmoil in the world. Even a recession won't hurt its business, because small companies will need to cut costs. Also, NCES operates on a contract basis, so business can't evaporate quickly. The stock's slide is purely due to lack of institutional interest, combined with its being a small stock.
I'm not going to guess the short term movements, but long term, NCES will be a winner. Using the dictionary to define the word "investor," I'd realize that in a few years, today's high quality small caps will be mid caps. Therefore, I would keep money in both THQI and NCES. THQI is my largest holding, which is the only reason I didn't add any more on the recent crash. But NCES, NOV, LUFK, RADAF, THQI and several others (including the 100s of great stocks I don't follow) are tremendous investments right now. They may not really outperform until December or January, but any and all weakness should be seen as opportunities to buy at lower prices.
Warren Buffett would consider the small cap turmoil a classic investment play on value.
Todd |
