Okay so I finally pulled the trigger today. I bought 200 shares at 14.20 making NLS almost 10% of my portfolio. I've been looking at NLS as an investment for some time now and like the company and especially the balance sheet. Wish I would have gotten in at 10 but what the heck.
I have been undecided for quite some time now about their turnaround. Based on local stores I am unsure if NLS's retail strategy will be successful against their lower price, copycat competition. However, after numerous times trying equipment out in the store, I have decided that NLS does make a superior product and I think that in the long run, that will make up for the price difference.
Also, I feel that this Christmas was a good one for big ticket items. I might be wrong but I am hoping for some decent numbers from NLS regarding the 4th quarter.
Although I missed out on $10, I still believe that even at current levels of revenue/earnings that $14 a share is a fair price to pay for the company. And, assuming you believe that revenues will begin to return to their former levels, that the company is a bargain. I believe that it will fall somewhere in between and am hoping for a share price of $20-$25 within the next few years.