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Blonder Tongue Laboratories Inc. Message Board

  • fabulouspoodle fabulouspoodle Feb 2, 2012 10:56 AM Flag

    BDR purchases RL Drake...

    ....they say the purchase was completed...did I miss something, I didnt know they were had an agreement to buy another company?

    Not much offered yet about Drake....ten million in sales, and the cost is $6.5 mil, plus probably another $1.5 mil in contingency payments if they hit some metrics near term. Impossible to judge.

    I really thought that I'd see a pr out saying BDR acquired, not the opposite. I know its not a huge acquisition, but I'm not sure the current management team has the energy...or maybe ability to pull off any sort of intetgration. They failed on a whole bunch of stuff, and sold the non core business' like four years ago.

    ...Maybe RL Drake Management will become the new kewy execs at BDR?

    ...or maybe RL Drake needs a gasheesh load of old long term inventory...

    Unfortunately, they wont get the immediate synergies of moving all operations to the underutilized BDR campus, since they state their keeping Drake's Ohio offices.

    I have no position right now, but have actually done very well trading this thang over the years.


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    • $0.91 as new 52wk low. Market cap 5.75Mil, less than the 6.5Mil BT paid for Drake. Is the street expecting management to waste assets, to simply guarantee their own salaries at shareholders expense? What's the company's operating history tell us? Who have been the losers? What's a few bumps in the road if you're pulling in $500K a year?

    • 8KA available. Results, profitable synergy or no, of the combination of the two probably won't be known until Q3 or 4.

    • Good writeup.
      Congrats on your successful trading of this stock -- unfortunately this has been one of my buy and holds over many years. I keep holding because it is priced so far below tangible book value that I agree - I have been waiting for someone to buy BDR, not the other way around.

      BDR is priced around 1/3 of sales. The new compnay will be purchased at around 1/2 of sales, so they are paying a higher price tag. Lets hope the new purchase "raises all ships" or in other words, I assume they must have some degree, however small, of profitabiilty?? And thus, maybe for starters, the entire new entity will be trading at at least 50% of sales. Anyone know if these guys are profitable?

    • still NO volume

0.60-0.01(-1.59%)4:00 PMEDT