Ballantyne Strong Has Room to Run

Several months ago, I stumbled upon Ballantyne Strong (BTN), a micro-cap provider of digital theater technologies and solutions. The company also had a small budding specialty lighting business. At the time shares were trading around $4 for a market cap of around $54 million. The company was debt free and had over $3 per share in cash.  

In recent weeks, shares in BTN advanced to $5 and now sit at $4.75. The catalyst for the stock price move was the company's $16 million cash acquisition of Convergent Media Systems. CMS manages digital media solutions consisting of over 95,000 displays for companies such as Kroger (KR) and retailers such as Best Buy Canada. The deal will add over $40 million in revenues to BTN and management expects an incremental $0.06 to $0.10 in earnings per share in 2014 and $0.15 to $0.20 in additional earnings in 2015.  ...282 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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