Q: If FSZ were to get bought out with metrics similar to CIX what might that look like to a price of the stock?
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5i Research Answer:
Even with the buyout, CIX is only about 10X earnings. FSZ is 8.5X. With a control premium, FSZ might fetch $12 in a takeover at the same valuation. But there are always a lot of variables in these things. A strategic buyer would pay more. A management privatization would want to do it at the lowest possible price that would get shareholder approval.