even if they sold for cash and relocated the factories that would net shareholders a 3 -4 dollar cash dividend.
This project will take years to complete. There is a lot of preliminary work still yet to be completed if the decision is made to relocate the factory. It has good potential according to both reports. read and read
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.
i think earnings will be a ugly miss and NTE will drop but should come back as the RE situation improves. Clearly the quarter was not profitable. Hate to say it but the price tells the story line here because many know the small cap space and earnings are predictable based on PPS leading up to. Words leak.
I do not think that it would be hard to reverse a decision if Koo thinks the PPS would be hammered. If he even cares about short term direction of PPS. He can not be too proud of the PPS at the moment. The stock is trading as if dividend will be cut and business margins are weak. Double head whack on the head.
do you think the dividend decision has already been made or is that a decision that could be changed if KOO sees the pps get hit hard like today.
Clearly the market expects NTE to flop its earnings report either with low margins or just a bad forecast. Long tern they are fine but fear can be a strong catalyst
If NTE is not above 8.50 prior to the release in three weeks Ill probably sell and just wait it out. If NTE heads higher prior to earnings you can tell that the earnings will be decent and any positive announcement could drive her into the low teens. Conversely if NTE falls under 8 prior to earnings It would be a huge red flag and may be time to sell.
I am pretty sure no one here knows the future of NTE assembly business whether they continue or not. From NTE history, 25 years, they always find a way to get good business. But sell or hold, but dont believe that anyone here knows anything special.