Onyx: Don't Hold Your Breath for $180/Share
However, as I wrote yesterday, the probability of receiving over $140 a share drops exponentially as the hoped-for target price is raised. Using 2014 earnings estimates of 60 cents a share, the valuation is over 230 times earnings. Looking forward even further to 2015 with estimated earnings of $1.50 per share, the valuation is still over 90.
After removing cost savings but adding in acquisition costs, I can't say Onyx won't receive a bid over $160, but it does appear the buyer(s) may wish they didn't pay such a high premium.
At the time of publication the author had no position in any of the stocks mentioned.
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