RE:RE:Stryker buying Novadaq for 100% premium Oh...elgin1...you your hope springs eternal!
I have not done a deep dive comparison but here are my observations.
NDQ, actually got busy! Both companies have been in existence for roughly the same period of time. The big difference? TSO3 is still a 1 trick pony. NDQ appears to have developed an array of devices and applications based on their technology.
Aside from technology, they have managed to garner support from a number of analysts from both sides of the border. Again, without having gone in depth, it looks like their management has been TRUELY focused on building shareholder value.
Who do we have? A handful of Canadian analysts who are ultraconservative - although perhaps not without good cause.
TSO3 has...what 20 Million roughly just sitting in the bank? Gosh it is just fantastic that we have a pile of cash and no debt but guess what nobody cares. You have to spend money to make money. As soon as the VPN rollout got underway, TSO3 should have immediately started dumping cash into R&D but instead they have left the cash idle and squandered their human resources on that one trick pony - not that it isn't a game changing one trick pony but it is pretty clear that the markets are not impressed.
I honestly hope that GoPats and Mustang Sally are right. But the fact remains that with the direciton management has gone time and time again has proven to be the path to a downtrodden stock price.
Why haven't we seen a US co-listing? Why hasn't there been any attempt at all to grow the company through acquisitions or new products? Again...I go back in time to some conference call a long time ago in a galaxy far far away where a spry young RR with a Princess Leia honey bun hair do said...something about keeping an eye out for strategic acquisitions.... And like all other allusions and promises....they fade into the mist...
I think it is great that RR has managed not to dilute shareholders but come on...I think it is basic math to realize that a smaller piece of a much bigger buy is much more lucrative and secure that a big piece of a little tiny pie. (And I am talking about the one trick pony business again).
So...you see elgin... NDQ was extremely proactive in actually building their company. All things considered, being the nerdy geek at the science fare with only one dazzling invention to share just doesn't cut it in the capital markets.
If wishes were fishes, we would have the 80L submission breaking the headlines, we would know the number of instals, we would have acquired at least one complimentary company, had a US co-listing, and a strategic partner that actually had an established reputation for high quality customer service...and we would have a share price north of $6 CAD with suitors chomping at the bit to outbid each other.
No. instead we have grandma Rumble. And like everyone does in the supermarket, we eye all of the other checkout lanes that are moving at 5X the speed of the one we are in.