The ER deal may be significant and may not be. It is certainly on the face of it not bad news. Why did they report these deals after January 1 and not prior to 12/31???
Because that was how it happened? No. Son that they would be able to put out great news the financial impact of which would only be visible four months from now rather than two weeks from now.
If you don't believe that you believe in the tooth fairy.
They will come out with Q4 2012 numbers that are at best concerning.
But the impact of that will be from a higher base and further will be tempered by unquantified good news that will help provide a suspension if disbelief for another quarter. During this and last quarter I expect to see the institutional holdings diminish.
One thing is for sure. It is not the institutions that are buying now. They own around 120% of the float. They cannot buy more without committing acts of vandalism on their obligation to maintain acceptable levels of risk with respect to diversity.
I will wait to see the numbers and see the incremental margin directions. EOY is audited. Q4 is the payback quarter.
But I have to hand it to these guys. They are professionals. This is brilliant.