I would be shocked if the Board would take $750m or $800m for this cherry. I would think $1B is the starting point. They have Japan ready to take-off and FDA approval any day. They could double their revenues is 2 to 3 years.
Dividend would do nothing. Very strange that they only bought back $3m in Q2 and have $37m remaining. Either they knew the quarter was weak and Q3 is weak and are keeping their powder dry or in discussions. They need to sell to a much bigger company as they can not get it done by themselves.
It is very clear having listened to the conf call and the recent trend here that Radware needs to be folded into a much bigger company like Checkpoint or IBM. They don't have the sales coverage or high enough contacts to get it done. Revenues in North America are growing nicely so it means their solutions are very competitive, but they lack WW coverage. The DDOS market alone is $300m a year.
Very strong statement here. Also saw where another hedge fund has over 5%. I don't know what Radware's management is doing, haven't heard a peep on the Analyst meeting on May 6, but maybe this is why Fidelity acted. You would think Checkpoint, IBM and even Oracle would be interested in the company. Some organic growth alone in the upcoming quarters or an OEM announcement with IBM could send this stock up 40%.
Realize Radware has $270m in cash or over $6.10 a share of cash. Maybe private equity will make a lowball offer. Checkpoint has $3.5B in cash just sitting there.