Thank you!
24 hours ago we would have said exit; however news is out that the company has been approached and has hired executives to help it explore a possible sale of the company. For now, we would HOLD to see how this develops. The company has a decent niche, but because of its past issues it may not ever get its prior premium valuation mulitple. We think a sale makes sense. Price is going to depend on the motivation of the buyer, but nearly every peer company trades at a much higher valuation than it, so they could afford to pay a decent premium. Insiders need to typically be on-board with such deals, as you are really buying people and relationships. We think $27 would be a starting point for real discussion, but that is only speculation. It has been higher than that in the past year. We would not add to a position.