This stock was ridiculous undervalued. After nearly doubling in price, Brink's is still trading at approximately 4.5x forward EBITDA (granted this year's cash flow will be weak because of non-recurring charges, but next year's projections are flat from 2002). The Company has terrific wind at its back having made good progress towards reserving for legacy liabilities and divesting legacy operations and is in a position to do even better things. BAX, the currently underperforming business, has tremendous leverage to a rebound in the economy and to buy the market leader in two key subsegments of the security industry at 4.5x EBITDA is a no brainer.
All of BHS' competitors are reeling and the company outperforms them all on all key metrics. Cash in transit is the far and away market leader in a growing segment.
This stock just looks really cheap to me at $23 a share. The break-up valuation is about $30 a share and the free cash flow is great. I think this company will trade up towards the $30 level in the next few months and if not a bigger player can buy a great company really cheap.
Pure game. Brinks is a big troublemaker in industry. It lost this year almost 70% of the Wels Fargo business on the West Coast and didn't get anything new. $22 is way too much. I would think twice before buying Brinks.