My one other concern is if they did an acquisition, if they paid too big a premium they would dilute some of the undervaluation that RTEC currently has.
Would be nice if they do find a company they like if they can do something more on the lines of merger of equals.
And who knows that might fly. Investors know that their tech stocks are undervalued right now because of the big drop in the last few months. They are going to want big premiums if their stock is to be bought out by another company. Or at least they will want that if it is a big company that they are not particularly interested in owning the stock of. But if the buyer is a small undervalued tech with a promising future that they like comparably well to the stock they own, they might not mind a "merger of equals" where now they wind up with a stock that is a very similar investment to what they had, a small undervalued tech with a bright future, but now the company is bigger and has the additional clout that goes with being larger in size.
How can you worry about RTEC doing a M/A event. How can they sell any lower. Up .33 or 4.5% today and yet 7.66-2.93(cash)= 4.70 approx. Or a whopping PE I'm going to let you all do the math. But it isn't any cheap 8X earnings--it is dirt cheap and they have no respect in the marketplace. Anything selling so low with so much cash is more an acquisition canidate than a buyer. Buyer gets cheap stock, adds their marketing group (likely much larger)and stick a known name on the product. Just food for thought. doc