RSST's Market Cap 35% Net Cash, LT Contracts, Reduced CapEx: Buyout?

OVERVIEW

Trading at only 3.5x EV/LTM EBITDA, RRSat Global Communications Network Ltd. (NASDAQ:RRST) (“RRST” or the “Company”) is an underfollowed, growing, high free cash flow generating, dividend paying company with a predictable revenue stream, healthy balance sheet, attractive industry dynamics and a new CEO. In many ways, RRST reminds us of another Israeli company. ticker PERI, which we wrote up in mid-July and has performed well…although we believe RRST is a much better business and a much cheaper company, its near term growth is not as high as PERI’s.