RBBN - ComTech: Growth By Acquisition Proves Elusive
- ComTech's deal with Israel-based Gilat Satellites fell through, and it had to write a $70 million check to Gilat for the pleasure of agreeing to terminate the deal.
- That said, the company is up some 50% since my last article and buy-rating on CMTL last October. Not too bad.
- The stock was up 2.6%+ Thursday on speculation that ComTech itself could be a takeover target.
- In consideration of the failed Gilat deal (and $70 million payment), the relatively flat revenue/EBITDA guidance for FY21, and huge run in the stock, investors may want to book some profits.
For further details see:
ComTech: Growth By Acquisition Proves Elusive