Improving Outlook Prompted Takeover bid

Article Excerpt

DIEBOLD INC. $37 (New York symbol DBD; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 65.8 million; Market cap: $2.4 billion; WSSF Rating: Average) fell from $54.50 in July 2007 to $23 in January 2008 due to a dispute with the SEC over the way it recognized revenue from certain ATM sales contracts. The company has now changed its policy, and expects to file updated statements in the second quarter of 2008. The new policy should have little impact on Diebold’s earnings. Meanwhile, strong demand for Diebold’s ATMs in China and India is helping to offset weaker sales in the United States. As well, its new ATMs are faster, interact with more computer systems and cut operating costs. The recent shift of its European ATM manufacturing to a low-cost facility in Hungary should also improve its long-term profits. Diebold’s stock is trading below United Technologies’ $40.00-a-share offer, which suggests a competing offer is unlikely. Diebold is a hold. hold…