I think it's a bit more complicated than that. If you've read the release, you will note there are many uncertainties and risks, some which are mostly out of their control such as currency risk and government approvals, surrounding execution of their business plan. It's hard to dive in with both feet on NTE given this cloudy outlook.
It was predictable... Anybody who is actually following this stock knew this quarters earnings were going to be bad. The company is in transition.... And all other issues ave been there for a long time!!!!
How predictable was it? I sold 1/2 my position last week..... And will be buying all of it back.... Already bought back 1/3 of it.... I probably should have sold all of it, but their is always a chance that they announce new contracts etc.... and the stock is still cheap.....
The biggest negative is probably that things seem to have been pushed back a couple of months..... Not the end of the world as nothing has fundamentally changed..... And that the wage inflation that everybody has been talking about actually has a # in this report.....
The dividend has influenced me to stick through this. It appears the company is re-inventing itself, which carries some risk, but I guess is better than dying on the vine with old products and methods. Big capital investments.
Concentrating on display segment might be a calculated good bet: schools are increasingly using tablets in lieu of textbooks--cheaper and I guess easier to keep updated.
Agreed - Still a 4.2% dividend while we wait for the new sales to kick in. - I did sell a little prior to earnings just about 10% of my NTE -only because NTE was getting to be too large of a percentage of my total holdings and I needed to rebalance. - I am beginning to buy that back and will on future weakness.