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More thoughts on LEND & NNBR looks attractive

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June 09, 2007 – Comments (1)

My blog got picked for Matt Koppenheffer’s Blog Buzz for the second consecutive week.  Clearly I’m spending too much time on this.  Many thanks to Matt and TMF for giving me a swollen head. 

More on LEND:
Two examples demonstrating why Wall St. analysts aren’t always highly regarded.  Friedman, Billings & Ramsey put a $15.10 price target on LEND and Keefe Bruyette upped LEND to ‘market perform’ on 5 June, the day AFTER Lone Star bid $15.10 per share for the company.  Brilliant timing.  And, I’m just a tad curious what financials the Keefe Bruyette analyst relied on to up the rating since, as you’re probably aware, LEND’s last quarterly report is over 6 months old. 

In order for the tender offer to go through, 90% of the shares need to be tendered.  IMHO, the interesting kicker here is that Farallon owns more than 10% and had recent access to Accredited’s financials.  One would assume they have folks modeling assorted strategies to figure out how to make best advantage of that situation.  According to the Wall St. Journal, Second Curve, the other 10%+ holder, sold 720,000 shares at $15.19 on Monday the 4th but still holds 2.18 million shares. 

If you’re thinking about playing this, I’d recommend you reconsider and donate the money to a charity; it will be more satisfying than giving it to a hedge fund.

Shifting gears - 

Follow up on NN, Inc. (NNBR)
This one’s a 5-star CAPS stock, all 28 active picks are positive with negative scores.  The score leader has the only negative pick and it's ended.  As noted in my blog last week, the stats look pretty good. 

I listened to the conference call recording and may put a little real money in this one. Based on the cc, I believe the price is a little depressed because the company is behind schedule with some international expansions.  If they don’t run into more major problems, the overseas operations should start adding more to the bottom line within a quarter or two.  And the Enterprise Value to EBITDA ratio could make it interesting as a buyout candidate.  A bearing company with a CEO named Rock - how could this be anything but a winner?

Thanks for taking time away from the nonstop coverage of Paris Hilton’s jail time to read my blog.  Who knows, there might be a way to make some money if those ankle bracelet things turn into the next hot fashion accessory.

1 Comments – Post Your Own

#1) On June 23, 2007 at 5:10 AM, TMFKopp (98.30) wrote:

Hey come on, you're not spending too much time on the blog, you're spending just the right amount!

Thanks for continuing to contribute to the community and help all of us Fools.

Kopp 

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