538m is their NET asset position. Remove intangibles, and net tangible assets are 304m, then divided by o/s circa 175m = 1.73/share NTA.
Now, I'm not using NTA as a primary valuation methodology. But on almost any multiple valuation (p/e, p/cf, p/ebitda, ev/ebitda etc) BKN is cheap.
re: debt, yes it's a little high but you forget they will pay down debt. Net of capex, on ebitda of 110m, their operating cash flow should be circa 45-50k. And don't forget, we are in a global long term low interest environment.
I wouldn't even have a problem with a small secondary equity offering, but obviously not at $0.68/share.
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