Still - sustained profitability even from a base of 5 cents/share per quarter for a software company deserves higher than a PE of 10.
Regardless of the minute details of how the company arrived at the profit this quarter, when we look at the Y! summary screen and details, until next earnings report we're going to see trailing twelve months EPS of 26 cents. That will make people take notice. I think that's also part of the issue why the shares are so thinly traded - nobody is interested. Now they should be.
Guess I was a little ambitious with those numbers missing the Tappin benefit.
Still a great quarter and shares should go higher with the profit and special dividend.
Shares down because of the market, the runup in shares over past couple weeks, and unknown about earnings.
However, this was a blowout earnings announcement. Everything was very strong.
Trailing twelve months EPS is now 26 cents/share - shares should immediately go $1 higher.
Going forward, this 12 cents/quarter should be sustainable with the greatly reduced expense footprint. Let's be conservative and say they can do 40 cents/year EPS - shares should be something in $4 to $6 range.
Bottom line - shares are wildly undervalued right now.
Small-timers playing games inside the real bid/ask - it's what happens when you trade below $1.00
Real bid = 10,000 @ .89
Real ask = 59,571 @ .90
Clearly one of the flock is on the ask.
Tax loss selling has begun early this year - especially for small caps.
Our pumper/sheep friends here have created more of a situation in that they will add further downward pressure.
I'll look to repurchase in about 4 or 5 weeks when the shares will likely be lower than today.
Thank you cashflow599/soso3775/dtap24 - much appreciated.
And wasn't BMO the turds who downgraded that took the shares down in the first place?
Downgrade "we think the new pad is buggy"
Should have held all of it for more...December may see the shares test $1.50 or $1.00 as tax loss selling kicks in with year end window dressing by funds.
1. Q2 will be soft again likely another loss. I didn't buy one of the comments how first half is generally weak. Was Q2 2012 not when we had the first sign of strength which started the share price increase?
2. To be completely honest, I don't like the financial statements. This quarter, bottom line was a loss of about $1 million. If you look a bit further up, you see that there was a gain of $1.1 million on foreign currency transactions. So operationally, loss was actually larger.
3. Who remembers prior statements from conference call earlier in the year indicating in 2 or 3 years revenues "could be" $200 million to $250 million? Nonsense - maybe $75 million if firing on all cylinders. No further comment.
4. Goodwill+Intangibles - we received the rebuttal to the SA article on the R&D and how they just amortize and depreciate as they go along. Fine - I don't have a problem with it. Now, company is moving forward to next generation NFS Ascent. Does that imply that there are write-offs in store related to legacy NFS?
5. In all likelihood, there is a bunch of tax loss selling coming next month and year end window dressing by any funds which own shares.
6. I could have held the shares for a possible deadcat bounce, but it was just easier to get it out of my portfolio to free up the cash and not think about it any longer. I do still have some Jan 2015 options which I'll hold in the event that things do accelerate again in 2014.
jk - at this time I will concede to you - $14.01 was the high for the year.
I called Omar a rodent fool. But, if you'd like to be a rodent too, be my guest.
They lost $1 million - big deal. Not the end of the world. Revenues are still growing, they are hiring real people, and making real sales.
No need to change id at all. Opportunity to continue to ease in to cheap shares. Pre-market is overreaction as will be most of the trading today.
We'll see a rebound and increase in share price into the spring/summer just as we did from this time last year going forward.
Looking for all weanies to give up shares today so I can build significant position.
Omar got what he deserved as a self-admitted criminal. Everyone, whether long or short is happy he's been taken down today and will sell and run away like a weak animal with his tail between his legs. Omar, I will say to you what you have said to others - I am buying when you are selling. Now scram you rodent!
Big block trades today:
15:40:43 ... $ 3.90 ... 50,000
13:11:51 ... $ 3.90 ... 50,000
10:56:14 ... $ 3.90 ... 49,100
These are not trades by individual retail investors. Someone is interested in building a significant position for some reason and have staked out $3.90 as their price. My guess is that if we reviewed the trades yesterday and Tuesday we'd likely see similar trades.
At some point, further info is going to have to come out as to who it is acquiring the shares.
What you can rest assured of is that this is not pump and dump activity which we have seen a couple times in the past year.
Possibly it is the company buying more shares from Buckingham? Maybe someone else, or a fund acquiring shares from Buckingham? As previously, this amount of shares is simply too large to be trading on the open market for NAUH based on what we know normal volume is.
A few months a ago with BPI's last conference call, the subject of potential acquisitions came up because BPI has a lot of cash and no debt. On Tuesday, once again it came up on BPI's call. Could the increase in daily volume these past few days be BPI trying to acquire as many cheap shares as they can before making a formal offer? I think NAUH would be a good fit with BPI - if anything, NAUH would elevate BPI's rocky standing with accrediting. Further, being profitable, having increasing enrollments, cash with no debt, etc. it would be an easy acquisition for BPI to do and put an end to the low valuation and poor trading in NAUH shares. Since BPI shares are now trading about 70% higher than earlier this year, there's a high probability that BPI does an acquisition for cash + stock since the shares now command much more value.
Anyhow, here is the question/answer from the BPI conference call:
Corey Greendale - First Analysis Securities Corporation, Research Division
Okay. And just one last quick one, if I could. The cash balance continues to build. I think up until recently, anyway, you've been talking about M&A as a relatively high probability use of that cash. With the stock kind of moving all over the place, how are you thinking about buybacks versus acquisitions at this point?
Andrew S. Clark - Co-Founder, Chief Executive Officer, President and Director
Well, I mean, we're continuing to think about all of the above, Corey. Yes, buybacks and acquisitions, we're doing a lot of work on both fronts. So stay tuned. I think we always said that any further action on that front would be continued upon kind of the formal approval from the Department of Education. So it looks like we are getting close to that approval. So that will be another data point in our analysis.
Word to the wise - be careful and don't get caught up in the euphoria.
I believe your interpretation of what took place at the open is not correct. But, we'll see.
The investigation is costing them an arm and a leg. That is a significant chunk of where losses are being accumulated - 10 cents worth this quarter...and they "are presently unable to determine the likely outcome or range of any loss, if any". Why deal with that uncertainty? Even without the investigation, for all the optimistic words and discussion, they still lost money.
Then there's tax loss selling coming soon as well.
Sell now, come back in 3 months and you can buy your shares back at this level or lower.
A strong balance sheet means nothing if you lose money every quarter and have a legal proceeding with no cap on how much it will cost, no end in sight, and no visibility on what penalties, if any, may be imposed.
Look at things objectively.