dear dnatronIn my day job, I am involved in the management of a...

dear dnatron

In my day job, I am involved in the management of a 6 billion portfolio for a major company.

In my experience, boards are really inflexible on acquisition issues. That is why, I have been returning 30-50% per annum on my portfolio while the company returns 7%.

Approvals would have been obtained to go to as it were to "stage 1". There is little doubt that a future plan would have also been laid down at that time with various options. Subject to satisfying certain hurdles, one of them would have been acquisition. A big company would rather pay a lot for a good acquisition than get a bad company cheap.

My view is that the company will probably be sold within two years outright for $6-$10 ($300M -$500M). There will be no mopping up of small parcels by Northrop, it just does not work like that.

But there is no guarantee, the company has to perform and be sold and that is why the company management probably couldn't give a rats about the current share price. Not great shareholder relations, but a buying opportunity nevertheless.

I hope this explains things a little better.

eos