NAPCO Security Systems drops ADI/Ademco distribution
I just reviewed the list of major holders in NSSC (Institutions, Mutual Funds, etc). In my opinion, I think some of these holders may be trimming some of their holdings going into earnings. They obviously aren't dumping shares or we'd see 4 to 5 times normal volume. This leads me to conclude that there is no good reason for the decline, besides some investment trimming. The trimming is most likely due to uncertainties of going into earnings in this shakey market as well as the housing slow down. It certainly appears that the vast majority of the big holders are still holding, otherwise, we'd see mass selloff (again 4 to 5 times normal volume). In todays market, the street likes to see earnings estimates beat, not mearly met. This said, NSSC historically forecasts low and anounces high (they beat estimates). I'm holding and banking that we beat the street.