No, I'm not long--yet. Just starting to get a handle on them. The move is evidently solely related to the takeover overture, as far as I can tell. The move to $9 corresponds to the accumulation phase and first SEC filing. The move to $10.60 coincides with the offer itself.
It looks like the company's earnings have been (temporarily??) depressed by Asia and a short-lived military contract. As the comparisons for those disappear, the company's basic business growth may resume.
It's evidently an engineering-oriented business, which puts them in good shape for growth. Over on Yahoo, however, one sour-grapes (?) ex-employee derided their manufacturing, their sales and their focus. But, the tone of the post was very sour-grapish, so I don't put too much credibility into the statements.
I heard of the company related solely to the takeover overture. Any purchase by me might be made based on (1) a guess that a takeover would occur, arbitraging the present price against the takeover price. ($10.60 on Friday, vs. $12.50 offer), or (2) estimate of healthy earnings growth if no takeover occurs. In my mind, the two are absolutely related, as future earnings should determine fair value.
Best,
JS |
