RE:Trevor Rose's Insights -Comment- Revised Deal Updated tonight.
RISKY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research The company has only been public for 30 months, so management is still on probation, at least publicly. The recent privatization 'flip flop' certainly docks them some points. And, having gone public at $17 and then (proposed) private at $18.50 doesn't make that much business sense to us. BUT...management likely sees the potential for the future moreso than investors, and we can't blame them for trying to take advantage of the low price in the market if prospects are so good. It leaves a bad taste, sure, but that's business. In a failed deal we would expect the stock to drop to the $14 range. The difference vs prior is due to the much improved market/rate backdrop. It will still have potential from there, certainly, but it is sometimes difficult for shareholders to support a management team that clearly 'wants to go private'. Thus, we would not expect a huge uptick in valuation multiples, but it could still do well with organic growth and acquisitions.