All things considered, I'm tepid on this deal and am expecting no more than a small premium in the immediate sense. Looking forward, the market is rewarding stocks with consistently improving results, so I would expect the same if Briazz is able to pull its bottom-line numbers together. Provider of electricity and energy services. California has utility investors in a tizzy. Right up front you need to know that the business you're looking at is different from those embattled operators on the left coast.
Revenue growth is steady.
Profit growth was sudden, but previous years' numbers were nominal. Utilities trade on earnings and dividends. We think there's a small pop in this deal right away and expect the stock to fall in line with that of similar operators based on dividend yield. You should too, as the businesses are remarkably similar. Verisity, last time I looked, was a double from its issue price.