Management and the newly configured Board may have sent themselves up for ouster if they did indeed pass on the buyout and this slide in stock price continues. Meanwhile, their primary competitor, Team, Inc., continues to build shareholder value.
I would have thought that we may have heard about the interested bidder by now. Several say it is Brand Industries, which would make sense, but I still hold out hope that it is Team (less likely since they just made a sizeable acquisition themselves). I had bailed on this stock long ago when it was around five. I grew very tired of lackluster earnings, excuses, and no evidence of it ever getting better. The price is propped up by speculation and the hope that a newly elected board can provide meaningful direction. Right now, it seems that the troops in the field are more than just a little confused, so I don't have any revived interest at this point. They will need to show me something before I believe that the new board will be ale to work together. If they would just do something about Milliron. I cant help but believe that FRM really started struggling when he came on the scene and his track record is just pure #$%$.
Good luck longs...Hang in there for news. Shorts better bail while you still can.
The IBs they hired to assess the offer and other strategic alternatives (Lazard) is a talented group and with relevant industry experience. I suspect they will want to generate several months of fees before delivering their recommendations to management. On a related note, one of the logical potential suitors, Team, Inc., appears to be off the table now as they made a very significant non-Furmanite acquisition last week. Still, there are a handful of other sizeable players in industrial services space where an acquisition of Furmanite would make sense. Thanks upthedivy and jaquepenne for weighing in with your thoughts.
I wouldn't put any stock into the ability of Furmanites internal people to analyze any kind of deal. It's finance and accounting group is sorely lacking in quality people.
Your prediction was correct even without an answer on the "expression of interest" i.e, unspecified offer amount . Not that I doubted it, however, I had hoped that mgt would have told us by now (2 months later) about the offer and and their agreement of disagreement with it. They hired a consultant to analyze it and have their own in-house people to do the same,
The lack of an update does not bode well for any buyout potential, and the stock price drop indicates a further lack of investor confidence in mgt. Not surprising given the circumstances.
A very legitimate point and thanks for your input. However, the likelihood is the stock will fall precipitously to the low to mid-$7's when/if termination of takeover talks is announced (in my opinion). The fundamentals don't support a price greater than this amount, and management has heretofore shown no ability to consistently increase net income or cash flow.
A lot depends on how "substantial" the offer is. At the time the offer was reported the stock was only $ 7 and change. A 40% premium would bring it up to about $10 +, not exciting for a stock that was over $11 a year ago. Lets hope that the substantial premium puts the offer price well over $10 a share.
This is clearly a case where a Bird in Hand is Worth Two in the Bush. An offer at a "substantial" premium at a time of near-record high stock market prices and historically low interest rates, or a long-term bet on a company with board members recently at loggerheads, no EPS guidance and no clearly laid out plan for growth. This is not a close call.
Industrial, 57 years isn't enough. Tell that old body you are in charge now and that you'll both be around another 20. Please do post when you feel like it. I'll miss your comments and insights. I read through them all before I bought and was entertained and educated.
Adios, chow, goodbye. I wish you all luck with this company. I sold off. Lot's of health issues to deal with and after 57 years on this marble I am hoping to see 58 or 59. I may check back in from time to time. Wish you all the best and hope for a change in the right direction.
Milliron and #$%$ and the other "execs" will all get nice paydays if there is a "change in control" if they are bought and merged in with another company. This company is in dire need of an enema at the executive level!
Shareholders should demand that acceptance (or at least disclosure) of the buyout offer with the alleged "substantial" premium be included as an agenda item at the June annual meeting.
This is a company that should be sold to or merger with an industry competitor of equal or larger size. Now with a Board comprised of members who were at odds just weeks ago (i.e.: Existing Board members and new members from Mustang) and with an offer on the table at what the Company described as a "substantial" premium, it only makes sense to consummate the deal or one of equivalent or greater value to shareholders. To do otherwise would be to give life to a company with revenue essentially no greater than it was 35 years ago, with no dividend payments, no revenue or profit guidance, no apparent growth catalyst and that operates in a low growth industry.
Tickets: $12.50. Or something.
Now what was the bidder's name? Or do we not have that yet? And the amount? $12.50? Why oh why are "investors" not backing up to the loading dock and buying like Bernanke at a treasury auction with the current bid for our $12.50 shares going for $8 something today, down 33 cents?
Don't believe the CFO and Milliron were getting along too well with each other just prior to Mustang wanting their board members.
No clearly defined gameplan, no profit margin guidance, quarter-after-quarter of earnings and revenue disappointments and a board comprised of previous at-odds contestants for company control. The past couple of months have delivered shareholders another earnings miss and expenses related to the proxy fight. Let's hope Lazard Freres develops strategic alternatives that either result in the sale of the company or give it a clearly defined, meaningful guidepath to significant growth.
$75K/year to be a director? And I'm sure there is more. Mustang can start right there.