Correct. It was unclear to me what produced this reaction at the time. I still think it is cheap, with no regard to the potential (likely) extension of the IDIADA contract - and the added visibility from such contract given the longer duration vs. historically. I think patience pays, and expect a higher offer before year end.
Interesting pick. you would need a business inflexion from past trends to produce returns I think, as past grow is very weak and dividend is very low. I like that they are increasing buybacks.
the real question is what is going to happen with the Energy testing organic growth? have you looked at this? Many people are quite bullish on O&G capex
Central to the thesis was a take-private, and that seems to play out. The new ceo proves to be a much better allocator and I think the company is at an inflection point - divesting O&G and increasing exposure to higher margin testing. Also, the market is totally discounting an extension of the IDIADA contract - adding to my comfort in the case. I expect a higher offer.
The move came from the news that some private equity firms are looking at Applus.
I own Applus, but I'm still wondering if it's truly cheap, or just cheap compared to it's (overvalued?) peers.
Correct. It was unclear to me what produced this reaction at the time. I still think it is cheap, with no regard to the potential (likely) extension of the IDIADA contract - and the added visibility from such contract given the longer duration vs. historically. I think patience pays, and expect a higher offer before year end.
Interesting pick. you would need a business inflexion from past trends to produce returns I think, as past grow is very weak and dividend is very low. I like that they are increasing buybacks.
the real question is what is going to happen with the Energy testing organic growth? have you looked at this? Many people are quite bullish on O&G capex
Central to the thesis was a take-private, and that seems to play out. The new ceo proves to be a much better allocator and I think the company is at an inflection point - divesting O&G and increasing exposure to higher margin testing. Also, the market is totally discounting an extension of the IDIADA contract - adding to my comfort in the case. I expect a higher offer.