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: Apakhabar who wrote (343)	4/6/1999 6:47:00 PM
From: Dave Hanson	Respond to of 376

It's certainly true that NOV has good reason to want to sell, but NCES has demonstrated itself to be a valuable property. If more than one party is interested, and NCES's bankers are at all competent, they should be able to command a fair price.

To: Apakhabar who wrote (343)	4/7/1999 7:46:00 AM
From: Mike P.	Respond to of 376

That certainly would have been true prior to Novs O&P sale for a measly 455 million. That distress sale pays down all the Nov debt (for now), at least now Nov sits in a better postion to negotiate NCES. Why would Nov even want to sell this cash cow now. 1. Its origination was suspect at best, shoot from the hip ipo, figure out how to make a conventional peo later. 2. Acquisitions are the only way to keep the 'delusions of grandeur' alive and continue to pop out shareholder pleasing, but dubious numbers. Acquisitions take much money. 3. And probably most important Novacare has no idea how to run a professional employer organization, and all these acquisitions have turned into one very large mess for them. NCES is a good company and has much potential but it has to be taken over by a company that knows what they are doing. Nov will bring this nowhere but to the basement. Ill probably buy when I know Nov is out of the picture.