They had a loss of $7.8 MM taking only $10 MM or so in restructuring charges, that is not very conservative when they still have on the books $95 MM of assets associated with discontinued operations (they also have about $200 MM in intangible on the books). They have close to $1/share in debt service per quarter, if their market turn down, they may have debt servicing problems (not enough cash to cover interest). Their bank insist they sell something like $300 to $400 MM of assets before the end of the year. Not a pretty picture. When I got in OMG in the $4 to $6 area, it was a value play and I expected a "fair value" of around $10. $12 is no longer a bargain, surely no sour grape in a stock where I more than doubled my investment...
If it was not a special bargain around $5, I would not have played it, I don't like business with razor thin margins and very heavy debt.
In edit: By the way, call me stupid, but I don't understand the exuberance this morning in NOVN, I don't think that their report justifies that exuberance, I am actually disappointed, I thought that WYE getting over the HTR problems would induce increase in their sales, it has not. I just bailed out here at $11 flat, not a bad bounce from $8.40 (my reentry was flat with last sale).
Zeev
