Starting a new thread as yahoo won't allow any more replies to the old one - LOL. I think management wanted to highlight the positive adjusted EBIDTA metric which was positive for the year. That may be a valid metric to some extent, but people are really focused on seeing GAAP earnings given the long earnings drought this company has had. They have been focusing on adjusted EBIDTA and they stuck with that metric.
If I was doing the press release I would have highlighted the small Q4 GAAP profit and that this was the second quarter in a row with a profit - but I understand why they wanted to highlight the adjusted EBIDTA metric instead.
I'm not that concerned about the convertible notes as they should be able to roll them over without too much trouble. This is capital from insiders and they don't want the company to fail. The cash level is good and increasing. This is a company that managed to raise capital when they were losing money, so I don't think they'll have too much problem now that they have turned profitable due to improving investment banking and market making results.
The recent Bull market rally is going to help their investment banking and market making business more - even if retail is still lagging.
I currently have about 70K shares of NHLD at an average cost of around 20 cents so I'm a small investor. I think the stock should do pretty well over the next few months and into 2013. I've traded NHLD on and off for years. I can even recall trading VFIN before the merger. I trade a couple of other micro cap regional brokers as well. SFNS is another one that looks pretty good.
I agree with your sentiments that NHLD should do very well this year. If the stock hit's $2 a share I think we'll both be very pleased. I held VFIN prior to the merger with National Holdings (Not sure of the name). At that time, if I remember correctly, NH was trading over $2 a share. I see no reason why NHLD should not be able to get back to those levels if they clear up the financing issues and drive profitability. Clearly the ecomomy is picking up so the headwinds should be much improved this year. I'll also be interested to see if insiders start to accumulate at these levels...that would be a very good sign.
I agree with your analysis, and would make you the PR Manager if I had the shares. LOL
With two profitable quarters in a row, NHLD looks like a screaming buy to me.....as an investor, are you a buyer at these levels? I have a large position (share wise, not $) and am considering adding to it. Thanks.