Sales good, margins not so good but profit s increase
competition strong but NTE increases market share by lowering prices. Land development on track, could be windfall in future. Dividend cut almost to zero but was expected. I am much more pleased than I expected with the results. NTE should go back to 10 eventually. i do not really see the short thesis taking hold here. One thing i liked was that they have orders now into next year. Always playing the cautious tone with orders but NTE has the expertise and the experience and the customers will continue to use NTE to assemble the parts.
Keeping a dividend (albeit a small one) was a pleasant surprise. I was pretty sure it would be eliminated. At any rate, NTE continues to make money and is strengthening its already strong balance sheet.
As a long term investor, I see no reason to sell. At this point there is little downside with a potential significant upside in the next 2-3 years.
why should the stock be up other than for temporary moves ? With the plan to develop their own land potential long term investors have zero visibility what might happen going forward and therefore won't touch the stock. There will be one more quarter of good LCM sales and perhaps they will be able to secure more orders but actually that's not quite the profile investors want to see. With the dividend now mostly gone going forward the yield argument is gone either.