I have been thinking NVLS buyout of SFAM/IPEC for a while, so I agree with you on that part of it. I think it would further enhance NVLS power as a better competitor Vs. AMAT. NVLS has had the quality in CVD to beat AMAT already in that game, just not the full line of equipment they need to get the glamour of size to be considered in the same league. But what I haven't had a chance to think about yet, is why not just use NVLS shares as the currency? NVLS is much more richly valued based on any financial ratio than SFAM/IPEC, so NVLS could issue a premium price to SPAM/IPEC, which based on current market price I think they deserve, while still not being anti-dilutive to NVLS. So why use cash. ALSO, I am a holder of NVLS and SFAM. I would much prefer a cheap back door into NVLS via a stock
merger with SFAM, than giving up my SFAM for cash. OR, maybe a deal of some cash and stock is a possibility.
ALSO, according to my rough calculations, the market cap of SFAM/IPEC (if the merger was done at todays prices) would be slightly above $500 million. Even after NVLS's stock offering, plus their current cash, they do not have enough cash to do a SFAM/IPEC deal as cash only. There would have to be some debt involved, or some stock. |
