Dennis, to demonstrate how ridiculous the buyout price is, let's look at some of the facts:
* SUCH A DEAL!!!!!!
The offering price of $14.50 values ATPX at a PE (based on the last four reported quarters) of 11. Defense/Aerospace stocks are currently selling at an avg. PE of 20.
* YUK!!!!!!
ATPX ended its first day of trading in Nov. 97 at $15/share, or .50/share higher than the proposed takeover price.
* MORE YUK!!!!!!!!
Earnings for the recently reported 1q (.20) were a 900% improvement over the same quarter last year (.02) and in turn 1067% improvement over pro-forma earnings for the first quarter '97. This is without any appreciation in the stock price.
* WHAT HAPPENED?
NOTHING HAPPENED!!!!! APTX managed to attract institutional interest.
Hoak Breedlove offered coverage and Fuhman Selz people were interested in doing a public offering and initiating coverage. Neither of these firms is involved with ATPX at this time. Is is because management was paralysed and unable to act? The lack of action has, in my opinion, created a bargain basement sale situation for ATPX.
Earnings are what drive stocks. ATPX delivered the earnings, but management has failed miserably, for whatever reason in their mission to enhance shareholder value. This failure is particularly puzzling, since insiders own about 80% of the shares and a there is an interest to sell.
What happens next is up to the insiders. They will most likely be given a presentation on the merits of the merger, including a summary of what efforts have been made to sell the Co. and the time that has elapsed.
Perhaps someone will stand up at that meeting and ask the question, "Why the heck did we bother to do a reverse merger after having to redo the S-3s three times to satisfy the SEC, become a publicly traded stock, take forever and a day to file the proper paperwork to be listed on NASDAQ NATIONAL, release news after the market closed on Fridays of long weekends, release news under the wrong stock symbol, attract and lose institutional interest, and to make a long story short....why did we waste two years to get to the same place (stock price wise)we were then?
Sergio |
