Investorfile Blog

Category
Investorfile.com (53)
Novra Technologies Inc. TSXV: NVI (1)
Posera Ltd. TSX: PAY (2)
Gatekeeper Systems Inc. TSXV: GSI (1)
AirIQ TSXV: IQ (4)
Intouch Insight Ltd.TSXV: INX (2)
Intrinsyc Technologies Corp. TSX: ITC (8)
Quorum Info. Tech. Inc. TSXV: QIS (6)
Sangoma Technologies Corp. TSXV: STC (9)
Avante Logixx Inc. TSXV: XX (8)
The Caldwell Partners Int. Inc. TSX: CWL (9)
Questor Technology TSXV: QST (9)
Titan Logix Corp. TSXV: TLA (9)
Ergoresearch Ltd. (2)
RDM Corp. (12)
IWG Tech. (4)
Wanted Tech. (7)
DDS Wireless International Inc. (6)
Radiant Communications (4)
Galvanic Applied Sciences Inc. (3)
Archives
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
Jul
22
Strong results, weak offer; something does not add up for Galvanic Applied Sciences' stock
Posted by: Gerry Wimmer
7/22/2013
|

TOP IDEAS: The steal sign is on for Galvanic Applied Sciences (TSXV: GAV)

It is not often when I write two consecutive blog posts about the same company but Galvanic Applied Sciences (TSXV: GAV - $1.85) deserves this attention; for all the right and wrong reasons.

Today Galvanic released its fiscal 2013 annual results for the period ending April 30, 2013. Ignoring the subsequent events, the annual results make shareholders smile. Galvanic had another outstanding year: $0.23 per share in earnings on higher revenues of $17.4 million. Most notable is that the revenues in Q4 are up 19%, compared to last year, fuelled by a 47% increase from sales at Galvanic’s US operations in Lowell, Massachusetts. The Company ended fiscal 2013 with $10.7 million in cash and marketable securities and no debt.

The fiscal 2013 annual results for Galvanic justify the right reason to prepare this blog post. The wrong reason is the actions of the Company’s Board of Directors. 

Last week Galvanic’s Board of Directors endorsed a takeover offer for the Company at $1.70 per share. The engagement of this Board clearly demonstrates their lack of effort (laziness) and independent thinking on behalf of its minority shareholders by rolling over to an unsolicited and inferior offer (See: Offer to buy Galvanic Applied Sciences pockets shareholders cash). Shareholders should be entitled to the return of all fees paid and the options granted to current board members of Galvanic if they are not willing to run a process to maximize value for the benefit of all its shareholders.

Fortunately the recent events occurring at this Company have not gone unnoticed. The takeover process (or lack of process) has come under scrutiny by recent articles in the Financial Post (See: Galvanic’s minority shareholders question process and price on going private). It questions if the offer is fair.

Hopefully the media attention and blog postings will help generate an acceptable outcome (a much higher offer) for the minority shareholders of Galvanic. 

But for now, using baseball terminology, the steal sign is on and there is no throw going to second, just yet. 

For the record, this minority shareholder is not tendering its shares of Galvanic for $1.70. This offer does not add up.

Galvanic Applied Sciences has approximately 16.1 million shares outstanding.

Galvanic Applied Sciences website www.galvanic.com

Author Ownership Disclosure: TSXV: GAV - YES


Read Disclaimer: 

This article is for informational purposes only. This article is based on the author's independent analysis and judgment and does not guarantee the information's accuracy or completeness. The information contained in this article is subject to change without notice, and the author assumes no responsibility to update the information contained in this article. The information contained within this article should not be construed as offering of investment advice. Those seeking direct investment advice, should consult a qualified, registered, investment professional. This is not a direct or implied solicitation to buy or sell securities. Readers are advised to conduct their own due diligence prior to considering buying or selling any stock. 

Investorfile.com is not engaged in an investor relations agreement with Galvanic Applied Sciences Inc. nor has it received any compensation from Galvanic Applied Sciences Inc. for the preparation or distribution of this article.

The author of this article has acquired and may trade shares of Galvanic Applied Sciences Inc. through open market transactions and for investment purposes only.

|

ENTER YOUR COMMENT:

Name:
E-mail: (will not be published)
Comment: (500 Char. Max)
Verification Code
Code Image - Please contact webmaster if you have problems seeing this image code If you can't read the word, click here to load a new word
Enter the Word exactly as it is shown in the box above:

FREE. Sign up for blog post alerts

Latest Tweets

Latest Blog Comments

Hi Gerry, Your philosophy is focused on principles that have been shown to produce above average results over time and your record has clearly proven that. Congratulations on a great blog and thank you for the hard work that you do in sharing and updating your ideas; it is much appreciated.