Wednesday, January 13, 2010

Argon ST, Inc. In Play

I picked up a few shares in a “potential deal” stock today, Argon ST (Ticker: STST), Inc at $24.84. This is a defense manufacturer, which is now in play. The company issued a press release yesterday stating that they were “exploring strategic alternatives”. In another words, the company is up for sale. Potentials acquirers include the big defense contractors such as Raytheon (Ticker: RTN), Boeing (Ticker: BA), BAE Systems (Ticker: BAESY.PK) and L-3 Communications (Ticker: LLL). The number floating around is a sale price in the range of $600 to $700 million. The company currently has a market cap of ~ $550 million so you’re looking at a nice premium. Of course, a deal may never materialize, but the probability is pretty high for a deal. I’ve had good luck with defense manufacturers so I’ll keep my fingers crossed on this one.


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