Vibropower

Vibropower: the obscure and generally thinly traded manufacturer and seller of portable generators has been seeing rising share price and volume since mid Jul. The stock extends the bullish momentum today, +8.3% at $0.065, possibly benefiting from positive spillover sentiment in the sector. Yday, XMH acquired Mech-Power Generator for $17.4m, in its largest acquisition since IPO. The acquisition multiple of ~5x P/E, 3.9x P/B, suggests that Vibropower's valuation at 9.6x P/E, 1x P/B isn't expensive. Over the past three years, bottom line has been steadily improving, with dividends keeping pace. The company declared a surprise dividend of 0.15 cts in the latest 1H13 results, which will lift trailing yield to 8.2%.