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Hi Jim,

Thanks for your thorough and thoughtful response. It sounds like I am a bit more comforted by the large cash balance that you are.

One small point I would add--since you mentioned A/R--is that their A/R is actually lower now than it was in 2007 and 2008, and they did an impressive job of converting that into cash during the recession (I have been in NTE since early 2009, so it is a point that I have been following). I therefore view the 2010 increase of A/R and inventory balances less negatively and more a consequence of improving business conditions.

Ultimately, it appears that our perspectives are not far off--our position sizes in NTE are comparable. After selling, yours is around 2%, while mine is a bit more, but still under 3%.

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