Score one for the treasure hunters of Tom Gardner's Motley Fool Hidden Gems. Back in January, community member Daniel Hong profiledInVision Technologies
Among the reasons: 1) a lock on the current market; 2) good potential for new explosives-detection applications, such as cargo screening; 3) continuous-revenue service contracts in a security-obsessed world; and 4) high insider and low institutional ownership. Best of all, the firm was already producing substantial free cash flow.
It looks like General Electric
The buyout price represents a near 35% gain over InVision's $37 per stub when we checked it out last January. That's a phenomenal return in two months, to be sure. But it also hints at the heartbreak that can accompany successful small-cap investing. Who knows what InVision stock might have been worth a couple years from now had GE not gobbled it up?
But I won't be shedding too many tears for the InVision investors. Given the pounding that other successful small caps have been enduring over the past couple weeks, many of us would opt for the misfortune of a premium buyout.
Interested in joining the hunt for hidden small-caps? Try Motley Fool Hidden Gems for free.
Fool contributor Seth Jayson has seen InVision's machines about 20 times in the past month, but wasn't clever enough to buy the stock. He owns no stake in any company mentioned above. View his Fool profile here.