Nuverra Environmental Solutions Inc. (fka NESCQ)

[Hampden]

Here's how I read the tea leaves.

NES announces that COO Gordon resigns and a reorg is to be implemented, but no update in guidance is given. This indicates that the quarterly results will most likely meet or slightly beat guidance.

Why? If management expected that results would not meet guidance, they would have announced that at the same time they announced the reorg.

Looked at another way, if the results were expected to be bad, management would have waited to announce the reorg, because when you have bad news, managements know that its always better to get all the bad news out of the way, rather than drips and drab.

On the other hand, management would not want to announce the reorg at the same time as results were announced if the results are good because that would have the impact of dampening the favorable revenue/EBITDA news of meeting or slightly beating expectations, and would raise questions about the future. On still another hand, I wouldn't expect blowout results either, because why would management announce a reorg prior to a blowout report? There'd be no reason to makes such changes. That's about how I size things up, as an experienced tea leaf reader.