As a very loose rule of thumb, when I see a company with a solid history of returns on capital, good market share, and a clean balance sheet trading for mid-single digit multiples to EBITDA, I take a closer look. In the case of Hoya Corporation (HOCPY.PK), the debate is pretty simple - will this company ever really grow again or not? Nobody really seems to doubt that the company's traditional technology businesses have likely peaked (at least from a growth perspective), but there's ample doubt as to whether the company can (or will) reallocate its assets and build itself into a growth story once again.
From Healthcare To Tech And Back Again...
Hoya has an interesting history....