almost 2x average volume, up 5% on a day when the market was almost universally down. No news. We have to get above 15 for me to get excited but this is a good start. We closed close to the high as well, which is always nice. Even on fundamentals, this stock should be in the high teens. I am just waiting for the deal to close and some announcement as to what they are planning to do with the cash. That will speak volumes.
Seems like CVG is one of the few stocks acting well today. I think its because everything CVG has to say makes little or no sense unless you look at it like a segway to selling the whole company. I think that they are waiting for this last sale to go through, then it may just be a matter of time. Either that, or there will be some serious share buybacks. It seems to me that the company is now stripped down to the core and that selling off the parts was the smart thing to do. It should also be noted that private market values of companies are often vastly different than what they are trading for publicly. I look at price to sales versus their peer group, and using that measure, and adding in the cash, it is hard for me to see them letting it go for anything less than $18, but I would then ad 15% to cover capital gains tax and probably a bit more above that. So I keep thinking low 20s in a buyout. They should do it this year before the capital gains rates go up.