Financial results were significantly better than expected. And as I suggested in a previous post, management is not indicating that future results are weakening, based on the pipeline of activities. Just the opposite.
On the downside, as one analyst put it, Jay Parkinson's departure "raises questions." But I believe that the significant fumble with the planned TFI sale must have played a part, and I'm sure that Jay was disappointed in himself that he didn't help make that happen. But a conference call is not a place to air these issues. I don't see any negative in Jay's departure, however, because all signs indicate that NES is doing the proper accounting, as evidenced by the write-down in goodwill this quarter. The risk of bad accounting just isn't there, which should neutralize negative perceptions ordinarily associated with a CFO leaving. It's not an abrupt departure--but one of transition, so all appears to be on friendly terms. In any event, many investors, in fact, have been calling for Jay to leave even before the TFI fumble because he's been looked at as a "Heckmann guy," and thought that Mark ought to clean house because, let's face it, Heckmann has made a lot of blunders and fumbles. But the smartest thing he did was to bring in Mark. So Mark should make the choice of NES's CFO.
