Zygo: Overlooked, Cash-Heavy, And Ready To Rebound
- Tailwinds in key markets and a positive shift in product mix benefit bottom line results.
- Hedge fund MAK Capital One (holding ~23% of ZIGO shares) recently took over as Board chairman; an unlocking/creation of shareholder value expected soon.
- Zero sell-side coverage of ZIGO shares has aided an inefficiency gap; any uptick in investor awareness could narrow the gap.
- Limited downside, with 30% of MV in cash and consistent institutional support at ~1.1-1.2 tangible BV.
- Our estimated CY2014 price target of $22 represents potential upside of 40%.