Alteva: After Rejecting A Buyout Offer, This Cash Rich Microcap Is Worth A Look
- Alteva, a microcap telecommunications company, was recently approached by a private equity group to be acquired at $8 per share, an offer it rejected as being too low.
- Alteva is currently offered below book value with a huge cash position and almost no debt, furnishing investors with a significant margin of safety.
- Investors have an embedded call option in the form of a higher bid from the Juniper Investment Company another TelCo operating in the Unified Communications as a Service (UCaaS) sector.
- Even if the company is not acquired, Alteva's management has authorized a share repurchase program and is well positioned to deploy capital or return it to shareholders.
- The operating fundamentals of the company's unified communications business are also steadily improving and will provide a substantial catalyst to the company's share price once it returns to profitability.