Take a gander at the above stock box. What pops out to me are two companies that have significant marketshare but what I consider relatively “low” valuations in relation to their “take out” value.
Take out is not the British version of “to go” order but rather the acquisition premium I think both could command if a competitive bidding situation arises.
Which two are targets? I believe Box (BOX) and Square (SQ) could be on a bigger company’s shopping list. Why? Simple math to market. In other words, let’s say an Amazon, Salesforce, Oracle or some other whodaddy wanted to get into the payment space quickly and cheaply (for them).
Square does that. An all-stock offer barely dilutes any of the above and the net gain in upside looks large to me.
Now for Box (BOX). We’ve all heard of cloud storage and Google Drive, iCloud, blah blah blah. Who cares? According to Box “more than 41 million users and 74,000 businesses—including 59% of the Fortune 500—trust Box to manage content in the cloud.”
BOX market cap sits at about $2.5 billion. I think that’s more than Elon Musk paid for his Iron Man suit. Seriously, IBM could snatch this up as an aperitif (what’s that? click here for language training, I did)
. Mainly the word sounded right. Cuz sometimes stimulating the appetite is what enterprise companies do.
Time for a video break: