Tuesday, January 23, 2007


AIH: Not enough!

Down 0.1 percent yesterday but up 0.4 percent today. After today's close, Ablest (AIH), a stock that I own, received a going private proposal for $7.50 per share. Considering that the stock is currently trading at book value and the company is profitable and has a steady history of revenue growth, I think the offer is grossly inadequate. Given the amount of the liquidity that private equity firms now have, Ablest's board, in my opinion, could get over $9 per share by shopping the company around to potential buyers. Failure to consider third parties for a potential sale would suggest that management's interests and those of shareholders are not well aligned and that minority shareholders should vote against the offer that is currently on the table. Hopefully the board will come through and either insist on a higher price from managment or invite other external parties to bid for the company.

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