RE: HEM for sale in 2013?? As I've said a few times - the problem with HEM is their scale. As SK says, they need to keep the new products coming. R&D expenses are way too high for their revenue. However, a combined entity can leverage existing sales channels (reduce Sales & Marketting expenses), some R&D, etc. Economies of scale...
Take another company around the same size of HEM - presumibly they are investing in R&D to create parallel product lines. Combine the two companies - no need to continue parallel developments. Net R&D expenses are signifncantly reduced. Combine sales channels - sales efficiencies are created. Larger company -> higher value purchases of raw components -> cheaper costs -> higher gross margins.
It makes so much sense... As for valuation - I would be looking for around 1.5 to 2x sales. I'd estimate around $1.50 to $2.00 as a fair offer that most shareholders would take.