Comment by claritason Oct 29, 2024 2:29pm
206 Views
Post# 36287258
RE:Takeover - priced in or not?
RE:Takeover - priced in or not?Given that Flowserve made an offer at $13 in Feb 2023 and at that time Velan did not have the developments we have seen in the nuclear area, I think that you might not be too far off with your $20 number.
What did Flowserve see in Velan when it was trading at about $5.50 to offer $13.00??
It is difficult to value Velan based on the current earnings and balance sheet alone. One would need to have some insight into the potential demand for its valves in the nuclear industry which has long lead times. A patient investor with a long term horizon may see a lot of value.
A motivated buyer might want to step into Velan in advance of potentially large contracts as Velan has a strong reputation in its field. As well, there is no analyst coverage and few attend the quarterly earnngs conference calls. At about $250mm market cap it is very small cap and won't attract a lot of attention, so it all boils down to what the Velan family wants to do....