No. of Recommendations: 1
Hi Jim,

I am enjoying following your portfolio; I like the strategy, and I find it easy to understand. So first of all, thanks and keep it up!

That being said, I am a bit surprised by this sell decision on NTE. First of all, I am confused by the timing, which is coming over a month after (and at a 10% lower share price) the Q1 release, which--if I understand correctly--provided the reason for the sale.

Second, I found the June 1st press release, announcing that the earthquake effect will be minimal and limited to Q2, to be really good news for the company (much better than I expected):

http://www.prnewswire.com/news-releases/nam-tai-electronics-...

Third, at $5.30 per share, the stock is trading at 0.75x book value, and of which 70% (nearly the entire share price) is cash. In light of that, I don't understand why you think the divvy is in so much danger--to the contrary, it looks very safe to me, and NTE looks like a good value from a P/B and P/[net cash] perspective.

I cannot argue the margin issue with you, but, to me, this looks like a company with a massive cash warchest, reasonable potential for a significant upside, and a nice dividend stream while we wait for that upside.

Am I missing something?

Best,
-Sean
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