Sam is laid up and Axsys is cheap

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03/16/2009
If I'm not getting back to you right away or posting anything of value recently, it's because I have wicked case of something like the flu, thanks, of course, to my children (whom I love dearly). This sickness has nothing to do with going out on the town Friday night. That is a nasty rumor. I'm not sure how these things get started. One thing of interest I'll hopefully have for the newswire on Thurs.: Axsys is ready to get out of the surveillance market. And one guy thinks a defense contractor will buy them. And this other Fool thinks Flir's gonna buy them. This is one of those things that can only be happening in this economy, where everyone's crazy. It's not like the company is in the tank. Their most recent financials are pretty awesome, really. I think most companies would be alright with a greater-than-10-percent net margin and sales growing at 34 percent. But, because people are irrational (and because hedge funds do 25 percent of all trading and people are freaking out and calling in their cash), Axsys' stock is down by half. So, that makes them rather attractive to buy. Hence the overtures. Now, who are Axsys (other than Axis' homonymic nemesis)? Well, they do pretty high-end stuff. Their cameras aren't cheap and aren't on the mass market. I can see why Flir would want some of their infrared technologies and, more specifically, accounts. Now, nothing may happen. But if the offer is well over where the stock is (irrationally) trading, the board is going to have to accept it.

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