IsThisRight's  Instablog

Send Message
As a System / Business Solutions Engineer in the computer industry, have played an analyst role to assist Utilies and Wall Street firms to apply the technology in their business processes. My role was then tranformed in HQ to Business Management : across multiple system/software products,... More
  • NSM Top Line AND Bottom Line Better than Expected ? 0 comments
    Dec 11, 2009 3:06 PM | about stocks: NSM-RETIRED
    NSM beat on the top and bottom and projected a better top line for next quarter.

    So how about bottom line for next quarter?
    We heard :
    1- top line will at par par with current quarter and MARGIN will be about the same.
    BUT TWO QUARTERS ( from Nov.), expect 300 points better!!!

    2- Consensus bottom line was 14c for 2Q and they came in at 20C! So we should expect at least 20c next quarter - not the current 14c estimates!

    3- In 2Q, they had $28M of re-org cost. They said that plant closing will be $5-6m. Does this mean reorg cost will be $23M less? Was there an implied LESS re-org cost... Do not know. May be someone can comment.

    4 - Revenue Growth with a more aggressive margin was on NEW BUSINESS where the factory cost are already sunken in. The comments made on more aggressive price was related on new products in a different line of products ( for example LED LIGHTS for CARS, or SMART PHONES)... Areas where they got $15M ( out of $340M rev) and expect to triple revenue.
    The margin comments were specific to new business lines, not current products.

    At this rate, FY ( April 2010) earnings will be 20c HIGHER than consensus.
    80c total anyone from the current 59 consensus?  Tell us your thoughts.

    In 2011, interests will be lower( will pay back some $300m bonds) ;
    margins better by 300 points after reorg is done,
    and NEW PRODUCT LINES will kick in
    $1.20 earnings per share anyone?

    Put a  growth P/E on this and this is a steal here. 

    Disclosure: Long
    Stocks: NSM-RETIRED
Back To IsThisRight's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


  • Does PEIX,AVRN,BIOF,GPRE Ethanol profits has long tail? Yes! Brazil short on export supply nxt 18 mths.US industry can supply WW slack
    Nov 27, 2009
    Nov 27, 2009
More »
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.