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Strategies & Market Trends : Turnarund Investing -- Ignore unavailable to you. Want to Upgrade?

To: batman10023 who wrote (467)	4/26/2012 12:10:20 AM
From: Good Fundamentals	Respond to of 1876

Batman10023, "if marion's 12 cent number incorporates no bond interest and full cost of the debt then the stock is probably cheap." LOL. I think NOVS is a good deal but not 12 cents of earnings without bond interest and the cost of debt for 2015 or 2016. I exclude DTA write-ups, collateral releases but I do include bond interest and present cost of debt.

To: batman10023 who wrote (467)	5/19/2012 1:40:00 PM
From: Good Fundamentals	2 Recommendations Respond to of 1876

Present bond interest for the Senior Debt appears to be calculated like it will in 2016 - only now the 1% is being paid from cash and the rest is being accreted to debt - please note that the value of this debt on the balance sheet is not listed as $85.9M yet. From page 10 of the 10Q for 1Q 2012: For accounting purposes the Debt Exchange transactions were considered a modification of a debt instrument as opposed to an extinguishment and new debt. Therefore, the principal amount of the debt will be accreted up to the new principal balance of $85.9 million using the effective interest method from the balance of $80.2 million and $79.7 million as of March 31, 2012 and December 31, 2011, respectively.