What we said:

Austal has over US$300 million of cash to collect from current backlog and the stock boat sale. For a net price of under $275 million an acquirer can own all of Austal’s intellectual property, its three state of the art shipyards and assorted land, soon-to-be-awarded servicing business, as well as further upside from more Navy orders. Austal is a bargain even ignoring all the cost savings that an acquirer could realize.

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What happened:  Shares of Austal increased 6x our original cost basis as a result of operational improvements and numerous contract wins we foresaw.