Couldn't agree more. This company's founder is 77 years old and remember's "birthing it" with all the struggles and hardships on the road to profitability and maturity. He may sell out as his "final act", but you can bet his emotional attachment to "his baby" won't be bought cheaply....just my take on human behavior as it relates to business...
Or.... you could have been in my situation. I had place a good till cancelled order a couple weeks back to sell 1000 shares @ $24.95, expecting the usual pre-earnings announcement run-up. You can imagine I was quite happy to receive the open price of $27.20 for my shares. Had I known something like this was in the works, maybe not.... but this offer came from our of nowhere.
Don't make the mistake I made recently with TRLA . When Z announce their intent to buy TRLA, I sold at first word for $52 (made a nice profit) and the stock touched $67 that same day. I know about the "one in the hand vs two in the bush logic", but OVTI is a much different animal than the speculative TRLA...this has the potential to go much higher and perhaps bring in other suitors...JMHO
Each share of OVTI carries with it $8.00 in cash. It's a joke to buy this company for $29 per share or $1.57 billion for the entire company. This is a premium technology company in digital imaging, competing successfully with SONY and Samsung. It bought all the patents from Eastman Kodak a few years ago for $65 millions. The valuation should be at least $2 billion or $35-36 per share. I don't think the transaction will pass the national security scrutiny.
the big money comes on the 18th. Something about Jupiter etc. So I suspect JPM will shop us around and see what they can get for us. I expect another bidder by Monday morning. Any self respecting hedge fund could make a billion dollars from taking us private.
Subtracting net cash, they want OVTI for WHAT x revenue? My monthly horoscope also mentioned I would get caught in a squabble and be insulted by the other party.
OVTI earnings is $74 million for the year ending April 2014. It is trading at market cap of 1,590 million. The offer is like getting over 4% dividend. Many companies on the Street are paying a dividend of just 2%.
You and I think that. The market has never given a damn. The pps has been suppressed for years.
Sentiment: Strong Buy