The case for L3:
1. They easily can afford it - lots of cash.
2. They need exactly what ISC offers, and out of all of the ETD offerings ISC is the best choice given their market position.
3. They have partnered already with ISC, in Australia, offering a bundled solution, and referring to it as their own.
4. They have stated publicly in the earnings call that they want to incorporate high tech ETD - so obviously they would want to do that world wide:
"There are new technologies that could be added as well to provide further screening capabilities such as the trace detection capability, which right now isn’t done a 100%. But, you can imagine that technology could probably get built into the tunnels that are already processing bags rather than in the individual one-off examinations that are being conducted"
5. They also said they have acquisitions in the pipeline going up to $300m
6. Shiloh said folks that he believes would know what is going on have said this is a 'done deal'.
The only logical concern here IMO should be what price it will be at. I am guessing $250-350m. That's a 300-400% gain from here, to be announced any day.
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