Q: Your comments on NPK's latest results would be appreciated. Buy, sell or hold?
Thanks
Larry
Thanks
Larry
5i Research Answer:
Sales were $9.4M, down from $27.3M. Net loss was $3.5M, compared with net income of $6.5M in the prior year. Cash was $9.3M. Volumes fell from 189,000 tons to 108,000 tons. EBITDA was negative $0.6M. Management talked up a big game about more cash on hand and an expected Brazilian recovery. But the quarter itself was not great. It is hard to grow with such a drop in sales. Debt is also $38M. With its tiny size, 71% decline this year and lack of coverage, it could still see some selling before year end. As it is based in Brazil we do not follow it closely, but we would see it more as a sell right now.