Q: Hi,
Haivision has announced a few new contracts or collaborations in the last few weeks and has hit a new 52 week high today (Sept 04).
Can you please provide your thoughts on the recent news and if they are significant (from a revenue/earnings view) going ahead.
They are due to report their 3Q soon I believe.
I currently have about a 1/3 position. Would you top up to a 1/2 position based on recent developments....assuming a diversified portfolio?
I recall ET had made a play for them awhile ago and assume that is now off the table given the increased share price.
cheers,
Steve
Haivision has announced a few new contracts or collaborations in the last few weeks and has hit a new 52 week high today (Sept 04).
Can you please provide your thoughts on the recent news and if they are significant (from a revenue/earnings view) going ahead.
They are due to report their 3Q soon I believe.
I currently have about a 1/3 position. Would you top up to a 1/2 position based on recent developments....assuming a diversified portfolio?
I recall ET had made a play for them awhile ago and assume that is now off the table given the increased share price.
cheers,
Steve
5i Research Answer:
HAI secured a five-year agreement with the Naval Sea Systems Command valued at $61.2M. It also joined a consortium with Airbus Defense and Space to develop new technologies for rapid security and defense communications. These positive news developments have helped spur a 60% rally over the past month. The momentum is positive, and could delay any sort of potential acquisition by ET. We think it looks interesting here, although we could see a contraction in share price following its substantial run up.
Its next earnings is next Wednesday, September 11, and we might wait until earnings to see if shares consolidate some of the recent gains.