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Nuance Communications (NUAN) Message Board

  • dachmeister4u dachmeister4u Oct 19, 2012 7:13 AM Flag

    Stockholder's Equity

    While SE is growing, if you factor in the balloon of Goodwill (excess of acquisition price versus underlying book value of the acquired), stockholder's equity is essentially flat to negative -- thus the dead money, stuck in gear at low $20s. As a follower of VR since early ScanSoft, it seems that just as the firm is position to grow the top line, a new acquisition comes in to flatten out the return on equity. I would prefer that Ricci would, at this point, simply organize and manage what he has in his organic stable. There has to be a huge potential in redundant efforts amongst the many acquired firms. VR is hitting its stride -- now its time to harvest, not clear forests and plow new fields. JMO. All the best.

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    • Please, the Goodwill angle has been played before. NUAN is ALL goodwill, sometimes referred to as "patents". Any book value, imho, is grossly overstated and only carried because the accountants need to have something to hang their hats on for GAAP. (I recall the "world is flat" theory is dead")

      Ricci has built the Company on the Revenue side by capturing the VR app vertically for the most part. Time will tell if it was a good strategy. I think it was/is!! Mostly institutional for a long time, not many changes, these folks have been patient. Some turnover when it has spiked, latest in high 20's and 30. What is the rationale to sell at below 5X earnings and 13 PE? I think its simply the short term volatility play, with a few accumulators mixed in. Only 7-10% available to feed the trading market for a long time. We should be getting closer to "blowout" Revenue, if not earnings. BTW, for some reason the +20% increases of the past and projected for the future has not been built in it seems.

    • Hard not to agree with you! I have to keep reminding myself that I had the same number of shares when we were at $4.00...SSFT days. I, like NMC can and will stay patient although it can really be frustrating at times. days like yesterday raise my pissticity level to new highs:)

      Sentiment: Strong Buy

 
NUAN
14.30-0.070(-0.49%)Feb 27 4:00 PMEST

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