Anatomy of a good target?

Perceptron, according to Seeking Alpha, has developed technology that is used in two of the fastest-growing industries, robotics and 3D printing.

?Perceptron,? reports Seeking Alpha, ?offers a wide range of specialized inspection and measurement solutions, including dimensional gauging, robot guidance, gap-and-flush, wheel alignment, robotic scanning and portable scanning.

?Helix is Perceptron’s newest 3D-metrology solution and is the world’s only sensor of its kind. It utilizes Intelligent Illumination to process features in 3D and then translate the 3D point-cloud data into CAD.?

Morningstar shows Perceptron?s 52-Week H/L at $5.68-$14.89, with a jump from $10 to $14 just in December alone.

?It has a low enterprise value of $60 million compared to its market cap of $92 million, and the company has $33 million in cash with no debt.?

The Helix technology has recently been installed at GM?s Corvette plant in Kentucky for in-process quality inspections on 2014 Corvette. GM reports ?on the composite body alone, 39 specific points are measured. It takes approximately 2.5 minutes to measure each car in station to within 0.25 mm. One hundred dimensional measurements are taken with each frame assembly.

And with Perceptron?s ?Intelligent Illumination? capability the Helix sensors automatically generate full, 3D point cloud data, with ?approximately 25 percent or greater improvement in meeting tolerance targets.?

For Seeking Alpha two salient points regarding the 3D sensor and laser measurement sectors are that 1. ?Three 3D-imaging companies have been acquired during 2013, and all three acquiring companies are in different industries: AMTEK, Inc., a diversified machinery manufacturer; LMI Technologies Inc., a 3D-imaging company; and 3D Systems (DDD), a 3D-printing company?; 2. ?Credit Suisse analysts believe this sector is ripe for future mergers and acquisitions because of increasing demand for industrial automation.?

With Perceptron competitors, FARO Technologies Inc. (FARO) and Cognex Corp. (CGNX), both lacking Perceptron?s technology and both, with excess cash in hand, looking to acquire synergistic technologies, Perceptron may well become a buyout target.