I keep hearing rumors regarding this subject. Additionally, there is a lot of discussion about a potential purchase going on in a forum on stockwatch.com (link to discussion: http://www.stockhouse.com/companies/bullboard/t.avo/avigilon-corporation )
Do you think Hanwha should buy Avigilon?
That's an anonymous speculation, not even a tip. This is a topic we should wait on for further discussion.
I have heard from different manufacturer execs that Avigilon is being shopped. I would think a deal with someone soon is obvious given their financials. I still think Hik/Hua or Cannon(Axis) is going to grab them.
...Cannon(Axis) is going to grab them.
Because you can never have too many high-end camera and VMS manufacturers?
I am not sure what is going to happen but I think it would be a very good move for Hanwha. The reason being is that they lost / are losing the Samsung brand, the Hanwha brand is weak outside Korea. Avigilon solves that plus gives them a high-end VMS (which they need) plus high-end analytics. And AVO's stock price is so low, it is arguably a bargain.
Bargain at 26x PE with declining profit and eroding margins? I don't know if I would call it a bargain, but for them it perhaps makes sense depending on what Hanwha's long term strategy is.
The profit is distorted because of the current CEO's approach (too aggressive spending relative to Hanwha, e.g.). Also, typically manufacturers (unlike financial buyers) look less at current profits than how the company would fit what they are doing and how they could insert them to increase profits.
I dont know I did hear they said that Aviligon values themselves at 3 billion or wants to make that much to drop a hint to someone who just got 3 billion in cash
I did hear they said that Aviligon values themselves at 3 billion
I think you mean: Avigilon CEO Aims For $3 Billion (Revenue).
Sounds like an odd number to quote is all I am saying......
(Hikvigilon,USA)
If nothing else, this rumor should bump their stock a bit.
In fairness, you don't know how much AVO stock would be down without this :)
In all seriousness, though, this is an old rumor. I am not saying it would not happen but plenty of people have talked about this for 6 months or longer.
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