The price was very reasonable. In fact, in retrospect, it may have been a steal. The NNE market had been impenetrable for ATGI. The non-high tech side of extrusions was a desirable area that Wakefield had little success in landing.
NNE instantly gave them that customer base, along with a lot of new equipment that was being under-utilized. This was exactly the level of diversification ATGI had been seeking for years. The increased capacity can potentially be used to support Wakefield product and visa versa. The primary difference between Wakefield and NNE is the customer, not the product. ATGI/Wakefield has already proven they have the systems and talent to make NNE a world class business. This is NOT what it was under the old ownership.
Couple this to the potential for "streamlining" the management ranks due to redundancy in high level positions, and the stage is set for substantially more earnings than NNE generated on its own.
Incidentally, during the last conference call the institutional investors felt the timing was good, the fit was fine, and the price was right.
As far as timing, who can say? When the market sucks, everyone suffers, guilty and innocent alike. Personally, I think ATGI is a victim of the highly popular, overpriced stocks in the same general market segment, and is hammered because of guilt by association, not facts. Look at the P&L, Balance Sheet and Orders flow/backlog and there isn't rationale for the current non-performance in stock price. The highly traded stocks with P/E multiples of 20 to 200 most assuredly deserve to be hammered, but not one currently projected to be well under 10.
Seriously, this is symptomatic of the lack of knowledge small investors have when they invest. The big guys (institutional investors, because they do their homework) aren't flinching, it's just the small timers that are nervous.
The company fundamentals are there, just like with some of the bluechips that are innocent bystanders in this market.
What you are seeing in action is FEAR bred by ignorance... I would hope they do more research when they select their mates, but statistics don't reflect that.