Wow. Feel like someone reached into my pocket and took a couple bucks out. Some preliminary thoughts:
1) Who are the independent board members that approved this deal and on what basis?
2) The board has a FIDUCIARY duty to get the shareholders the best price. What do they have to gain from the transaction (most are selling their shares for a loss)?
3) Who are ANTP's primary competitors? I have to imagine they'd like a shot at the company for this price.
4) When is the last time the real estate was appraised? It's a good facility and lots of companies are looking to move to Texas from high-tax states like CA. I think the real estate alone is worth more than the offer price. The company has no debt. It's hard to believe it couldn't borrow a little money against the real estate, if necessary.
5) The company owns property in the middle of the Barnett Shale. Has anyone ever checked if it makes sense to lease a well or two? Maybe there's real gas under this thing.
6) What occurred over the last three months that caused the company to completely write off the Tracciare investment?
7) Backlog is increasing substantially. Is the cash position really so dire? Clearly, Fitzgerald thinks the company just needs a short bridge loan before it returns to profitability. Otherwise, he would charge a higher rate on the loan and wait to buy the equity for pennies. I wonder if there are some nice new contracts waiting in the wings that we aren't supposed to ever know about.
8) Why does the company need to be private to streamline operations as Fitzgerald describes in his cover letter? Shouldn't he be doing that now?
Maybe I am wrong and this really was the company's only option. But if the CEO thought it was going enough money going forward to warrant the write off of the deferred tax asset (resulting in a significant decline in book value), why would he offer to buy the company at all? I am suspicous of self-dealing and a breach of fiduciary duty here. I will remain so until proven otherwise. If you feel the same or would like to discuss the company, please e-mail me at bbrutus08 at yahoo.
Antenna Products Corporation owns a ten-acre industrial site located along US Highway 180 in Mineral Wells, Texas. The facility consists of a main building containing 66,000 square feet of manufacturing area and 10,000 square feet of administrative and engineering offices, a second building containing 20,000 square feet of manufacturing and shipping area, and a third building containing 15,000 square feet utilized for receiving and material control. Three additional auxiliary buildings, which total in excess of 13,350 square feet, are utilized for chemical etching, painting and storage. The facilities are in good condition and with the current complement of machinery and equipment are suitable and more than adequate to meet production requirements. Depending on the mix of product types in process in any given time period, the Company could potentially more than double output with current and planned property, plant and equipment.
Phazar Antenna Corp. has no facilities. Phazar Antenna Corp. uses the facilities of Antenna Products Corporation in Mineral Wells, Texas.
Thirco, Inc. owns a fifty-acre test site in Mineral Wells, Texas. The site includes three buildings with 28,000 square feet of space. The space is currently being leased to Antenna Products Corporation for test activity with some storage of inventory. The two larger buildings, if needed, are suitable with rearrangement and some conversion expense, for additional manufacturing utilization.