The two acquisitions you reference are some of the few that IPGP has publicly announced, but there are numerous others. They are normally small, private transactions that are only mentioned briefly in SEC filings. IPGP has not traditionally made large acquisitions of operating companies like COHR or RSTI have and most of those are IP purchases like Mobius or integrators like JPSA to gain access to technology or markets. IPGP doesn't make excimer lasers and has plans for broader use of UV and pulsed fiber and semiconductor lasers in microelectronics, not the just the OLEDFPD market. What you see with IPGP is a company that has grown 90% organically, not the usual model for the laser industry.
I'm on the fence in the near term after listening to the cc. I didn't like that management had so little insight into demand. Two quarters now of downward guidance revision. At the same time, the margins and cash generation were as good as any other quarter on a percentage basis - certainly the envy of any other laser maker. I also liked the discussion of new products being tested and qualified at new and existing customers with management making all the investments necessary for the future. We may not know for several quarters whether this will pay off. I'm patient and holding. I would be a buyer if the price goes lower from here since the market has overreacted as quickly as it ran the price over $100.
I doubt a combined COHR and RSTI will be competitive with IPGP in high-power materials processing. RSTI is not a strong company. They went into COHR's arms because they are losing share and the lousy board and management there didn't want an activist to take over. COHR is more worried about IPGP's entering the semi market given their UV technology acquisitions and investment in crystal manufacturing. COHR has all its eggs in excimer/OLED, but I don't see that being a long-term market. So this was a marriage of convenience, but I think the combination will not be an easy or fruitful one. The bigger question is whether IPGP can replicate its success in materials processing in the semi and medical markets it is now targeting. I give IPGP much better odds in those new markets than COHR-RSTI being a game changer in materials processing.
I called this in my post of 12/7/15. I expect good earnings and guidance, but not sure if the stock will go much higher than this level for long. It is getting to fair value for the near term IMHO so I am holding, not buying.
With NEWP and RSTI being acquired, the ridiculous price of GSIG reflects the market thinks this is the next laser company to be bought. As competition has heated up in the laser industry, you are seeing a thinning of the herd with the smallest and weakest being picked off. Nobody weaker at this point than GSIG. They've given up on most of their laser businesses because they couldn't compete (semiconductor, scientific, fiber all gone). Now just selling low-power CO2, scanner/mirrors, and a bunch of "medical" component businesses they've acquired over the last few years (mostly losers IMHO). I think GSIG will be killed off slowly by competition in the coming years if nobody buys them first. Wouldn't be surprised if they were acquired, but also I wouldn't be an investor in a debt-loaded turd at this high price.
RSTI is under pressure from activist investors due to chronic underperformance so they are looking for a savior. It is weaker technically and competitively than the financials suggest (and they aren't that great) and didn't get that way overnight so COHR has its work cut out for it. Expect a lot of expensive restructuring plans and write downs for the foreseeable future. GLTA
The industry is ripe for consolidation, but COHR may regret buying RSTI. I think RSTI is a terrible company. Maybe a good short candidate in the near future.