Keep in mind that you MAY not see $18 again because:
-- Flynn seems to be working to promote the image of resuscitated company(manufacturing, layoffs of excess people, concentration on the main plays etc)
-- Much more press release activity (awards, etc)
-- Some potential announcements of design wins
-- General promotion of: THERE IS A TURNAROUND GOING ON
(of course will not necessarily be believed)
-- In parallel M & A activity which could readily result
in sale of company, major positive restructuring, alliances etc.
I may be naive, but I think these guys realize the box they have got themselves into, and are not going to strike out again, one way or the other.
So I think the "takeover premium" is going to become
interchangeable with the "turnaround premium"
I could be wrong, but I think that is happening. And it is
important that a turnaround activity go on AND BE PROJECTED, otherwise the sale negotiation becomes:
"we are beyond all hope without you, what will you give us?"
Just a personal opinion, of course.
Best wishes,
Jim |
