Search This Blog

Wednesday, October 28, 2009

NLC - nice quarter

What a great quarter. Growth is not there yet, but they are becoming lean and mean. Boosting their cash flow to a very impressive level. All this was done with a reduction of inventory by 17.5% from Dec 2008.

This is simply great.

When revenue growth kicks in (which management indicated it will start, especially in Asia, in Q4), the earnings power of this company will be very very nice.

Even with today's up move, NLC is still not overbought and I am hard pressed for reasons to sell into this strength.

As the market declines, I will be adding NLC into the intra-day weakness.

(The story here is not an economic sensitive story. Its a company turn around story, that will exponentially benefit as the economy turns.)

No comments:

Post a Comment