Avid update

Today Avid dropped around 29% on basically no news.  It issued a press release saying that Avid shares would be delisted, which they had already said would happen.

At a market cap of 192M, I think that Avid’s valuation is reasonable.  While management is poor and the company hasn’t made GAAP profits in years, the assets are valuable.  Avid’s video editing systems and Pro Tools are leaders in their field; Avid itself has strong turnaround potential.  There is the possibility of a takeover as an Avid and Autodesk combination would make a lot of sense.  Avid’s customers would certainly welcome such a merger/takeover.

*Disclosure:  No position.  I covered earlier today and missed most of the drop in price.

One thought on “Avid update

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.