All,
Talked to my broker today. He found some information indicating that MSIM had revs last year of about $57M, and net earnings of about $6M. Have no idea about growth in revs or earns, or their year-end, or if acquisitions have been made subsequent to these numbers. So for 7M shares, it appears that PCOP is getting considerable earnings accretion immediately, and paying only about 2.5x revs, not bad for a software acquisition, depending upon growth of course. MSIM participates in many industries, including petrochemical, pharmaceutical and others. Its major competitor is TRPS (Tripos). The acquisition will double the float, thereby improving liquidity and narrowing the spread(for traders, anyway). Increased market cap may prove fruitful as well, bringing it onto additional institutional screens.
FWIW,
Jim Lang |
