Stock price when the opinion was issued
It makes high quality valves for the nuclear industry. It had a take-over offer of $13 a share and he sold at around $12.50. However there were worries that the French Government might block the sale so the stock price dropped. The nuclear valves division is based in France. However he feels that the deal will go through in the next few months at $13.00 so has been buying it back as a short-term investment with up to 30% upside.
Buy 1 Hold 0 Sell 0
They remain the leader in nuclear valves. Shockingly, the French government blocked an American company from buying this small Montreal company. So, the family decided to sell the company and he expects it will be at a higher price. Their backlog and margins are growing. He still owns it. Trades below tangible book value.
The litigation costs over asbestos content have been increasing and eating into profits. It is a jewel of a company and should be worth more than the present offer. There is the possibility of a higher offer.