Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : NovaCare Employee Services (NASDAQ:NCES) -- Ignore unavailable to you. Want to Upgrade?

To: Todd D. Wiener who wrote (329)	4/3/1999 3:21:00 AM
From: Apakhabar	Respond to of 376

<<And there must be some restrictions governing this type of action.>> This is a key issue. Are there? My point is that NCES shareholders who are nervous about what NOV is doing are not necessarily ignorant (though of course some are). And in fact, until we find out what if any restrictions are placed on NOV it is we who are ignorant, at least on this issue. Put it this way: if NOV can't pay their creditors from their operating income, they'll have to get cash somewhere. We may be overlooking a simple correlation: Wednesday NOV spiked up to over 2 (over 25% rise) and NCES also spiked 25%. When the news of NOV's poor earnings was divulged, the price retraced quickly. And, not quite in step but just a little behind, so did NCES retrace. What do you make of that? Perhaps (if I may answer my own question) the selling of NCES Thursday merely showed a lack of buying depth so typical in small caps nowadays, including my/our beloved/cursed THQ. Traders just took their profits on a day when nobody wanted to buy. Good luck, and thanks for all your recent contributions. I hope you're doing well at Tech Trends.

To: Todd D. Wiener who wrote (329)	4/3/1999 10:25:00 AM
From: Mike P.	Read Replies (1) \| Respond to of 376

'Let's put this into perspective. If NOV owns 2/3 of NCES, they're not going to sell it on the open market.' Heres the problem as I see it. The creation of NCES was substantially smoke and mirrors, though perfectly legal. Nov goes and buys three small to medium sized independent peo's in Florida and 1 in NY, and consolidates them as one corporation, still this is not a particularly large peo compared to competitiors so they take all the Novacare employees throughout the country (which is very substantial, no exact numbers but certainly 50% plus of NCES), add them to the acquisitions and presto, IPO of 2nd largest professional employer organization in the country overnight. Now Novacare is shutting down in many areas of the country and laying off staff by magnitude, these are the brunt of NCES's employees. Heres a question for IR, will the acquistions by NCES in the west provide enough outside (not novacare) employees, revenues and sales to offset the Novacare fiasco, and how can Nov sell NCES if Nov is such a critical part of the revenues and on a side note that I find particularly amusing, why are NCES employees (actual, not clients considered NCES employees) still paid by ADP, a payroll processing company. And no, ADP and Nov have no other relationship so dont bother speculating on buyout, takeover, etc. - ADP was doing the payroll for King of Prussia well before NCES as Nov had zero experience in such matters before jumping into the business, and the obvious conflict and change has yet to be rectified. You would think Nov would find it rather awkward and embarrassing at best if people were aware they, as an employer services company, choose to use ADP to do their payroll. Just some thoughts to ponder and some questions to ask, NCES has a big chance for success, right product at the right time thing, it would be much better if someone who knew what they were doing actually ran it though imo.