Wick- sorta agree w/ you EXCEPT when you listen to BM's latest interview- he sees ISC surviving and thriving as a stand alone ( sure, could be a negotiation bluff).
Then consider their talent search: heavy engineering talent wanted.
So, ISC is looking for a partner to buy in, they will take that partners "talent" into ISC to ensure correct integration development, then, if successful, the partner can buy the balance at a REAL valuation.
OR...the partner delivers REAL valuation right now.
In my thinking, REAL valuation can only be based on forward revenues ( all other metrics are absurd) so at 5 Xs 42M you 210M plus assumption of debt. You could add an extra 2 to the 5 if you really think ISC has the future wrapped up tight.
The benefit of a partial invest in by a partner, time allows them to see what ISC claims, that non-contact products coming out of the ISC IP closet will rule checkpoint and baggage product development for the next 10 years. I think they will so now comes hammering out the deal points.
A PR right now talking about the TSA's development grant for $2M for ISC's inline would really add some strong credibility at the negotiation table!!! Besides taking some financial heat of this 8 year old pup.
