Paradigm Valuation Paradigm's valuation of $3.50 to $4.00 actually may be on the conservative side. Recall that FTG sold its Fernau Avionics division in 2007. Comparables between the Fernau transaction in 2007 and FTG today would value FTG at $7.00 to $8.00 on a takeover basis. FTG as it is today is a much more attractive takeover target. A takeover target? By whom? Maybe TTMI? TTMI has recently reorganized in order to grow its aerospace operations as a separate division. Given FTG's position as the North American premier aerospace/defense PCB manufacturer an FTG acquisition would be highly attractive to TTMI. An FTG acquisition would be immediately accretive to TTMI with solid and sustainable revenues going forward. Investors will note that TTMI already has bought up or amalgamated all of its competitors (except FTG) in recent years so that, in actuality, TTMI is now the #1 publicly-traded North American PCB manufacturer. And the #2 is, yes, that's right -- FTG!
Here are two reports on the Fernau sale at the time in 2007:
https://www.dunedin.com/case-studies/fernau/12
https://www.theglobeandmail.com/report-on-business/glendale-international-sells-fernau-avionics-unit/article1087713/
Interestingly, this next report is about how Fernau was resold just two years later in 2009 for a further significant increase in price indicating the substantial value to be recognized in well-managed high tech manufacturers that are leaders in their sector.
https://www.moog.com/news/corporate-press-releases/2009/moog-acquires-fernau-avionics-limited/
Also, don't forget that Fernau's sale was handled by the same management team that is now running FTG. Could FTG management be positioning FTG for a takeover acquisition?
Any thoughts??