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Allied Motion Technologies Inc. Message Board

  • janusdealer janusdealer Jul 11, 2013 10:12 AM Flag

    kicked in the testicles is how the Bored and Mgmnt

    ought to feel losing out in the current bull market.

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    • Management and the board are indifferent to the stock price. They feel that focusing on the business will take care of the stock price. It's the tortoise approach which works in the long run. What they don't realize is that the multiple valuation of the stock is significantly impacted by supply and demand of the stock. Illiquid stocks demand a lower multiple because of the "roach motel" concept which prevents most investors from even evaluating the stock for potential investment. Most investors look at AMOT's volume chart and then dismiss it. High multiple stocks create the right currency for potential acquisitions which most lightly will be accretive to earnings. I love when a company valued at 10X earnings uses its stock to buy a company valued at 5x earnings. I love it more when a company valued at 15x earnings buys a company valued at 5x earnings. Management of a target company may be apprehensive taking much of an illiquid stock in lieu of cash. There are so many variables to consider.

      I give management and board a grade of C for investor relations. They at least out put out a quarterly press release and have a conference call. The 10Q is always filed after the conference call and the press release is not very detailed. Management is doing the minimum and the stock price reflects that.

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