nylex down by two thirds, page-8

I found todays announcement by GUD of the sale of their Victa lawnmower product range interesting.

GUD have low debt levels, and as recently as 22 May confirmed this years profit at the upper end of guidance. Also they spoke highly of the Victa product range:

"It is a very pleasing performance from the group, largely driven by improved profits from Oates and Victa....."

So why sell out?

Commenting on their half year results of their water products division they made reference to:

"Strong underlying demand in new markets:
Rainwater harvesting
Household water treatment"

I have long felt that at some stage NLX would be a take-over candidate for their water business. The sale price of Victa - about $23mio is about the market cap. of NLX.

Just a thought.