The Bull newsletter has IDL as a likely takeover target:
'On the flipside, he says its their smaller counterparts with stretched balance sheets that look increasingly vulnerable to takeover. He expects large-caps trading on significantly higher multiples to pick off their small-cap counterparts, and cites mining services stock Industrea (IDL) as a likely takeover target.
Trading on a 2011 P/E multiple of 6x, Rolley says Industrea is likely to attract larger peers trading on multiples of up to 20x. He says the amount of scrip in free-float should also make Industrea an easier target, and expects any deal to be completed with a combination of scrip and cash'.
IDL Price at posting:
37.0¢ Sentiment: Buy Disclosure: Held
