AATK - need to start taking a look at this reverse merger play. It is anticipated that they will merge with M&I electric by the May 18 deadline, meaning for under a buck, you can essentially buy a soon to be public company that had almost 70% earnings growth last year, and combined, expect to earn min. 0.092 eps (3.5m net on 38m O/S) for 2007 pre-split. The CFO has mentioned in email that it will likely be a 1:5 RS to meet the $4 new listing standards - that means 7.6m o/s, float likely under 1 million (he said the M&I issued shares will be restricted), and then earnings of 0.46c for the year with new opportunities in China as well.
I figure 15PE is a fair value given the growth (although the sector a little hard to pinpoint - electrical components) - that puts it at $1.38 currently to start with - a 55% premium to todays close. I imagine this will be over $1 by mid week next week, and if any hedge companies pick up on it post merger, could get real interesting. Ground floor was last week, but obviously undervalued with what they anticipate for 2007.
