Q: So...do you think there will be a bidding war here? Should buy at these levels...with the assumption that the price will move up?
5i Research Answer:
GIL says it has 'several' potential bidders for the company, and it wants to do a friendly deal. This implies that there could be an auction, and perhaps higher prices. But nothing is guaranteed. Sometimes deals do not happen. Still, we think this is a reasonable opportunity to buy. It is a quality company with a very low valuation of only 12X earnings. Certainly a motivated buyer would be willing to pay more for it.