Very good point vfrioni. Mergers and acquisitions are not easy to value and even more difficult is to forecast earnings which makes RXP somewhat speculative in that sense. I am reassured by the fact that management has very strict criteria for acquisitions and they don't seem to have wavered from this. As I've said before, investing in the company is a bet on management and its their capabilities in integration of the various units that is the real key to success. The odds lie in their favour based on their skills. If done well, they would have a real competitive advantage as a IT company considering it opens them up to a whole range of industries. Employee retention is a really crucial aspect in all of this well, as often maintaining employees from such different companies to work under a single culture can sometimes be a tough gig. As an analogy, HCL technologies ( indian IT company)is a case study in transformation ( a harvard case) and the CEO later wrote a book called Employees first customer second outlining how he grew the company exponentially by focusing on employees....http://www.amazon.com/Employees-First-Customers-Second-Conventional/dp/1422139069.
RXP Price at posting:
70.0¢ Sentiment: LT Buy Disclosure: Held
